Online retailer Amazon has announced it has opened national branches in certain European countries. Previously, all revenue was recorded in Luxembourg, prompting criticism from the European Union DW.E news reported.
An announcement from Amazon on Tuesday indicates it will be subject to local taxes in several European countries, rather than just within the borders of its current official European base of operations in low-tax Luxembourg.
Amazon said that it would set up revenue-filing offices in Britain, Germany, Spain and Italy – and that sales in those countries would be recorded for tax purposes rather than being recorded in Luxembourg, as had been predominantly the case until May 1, when Amazon said the new offices were opened.
The company said it was also working on setting up such an office in France.
#AceFinanceNews – BRUSSELS:Jan.17:The EU commission on Friday (16 January) published details of its ongoing anti-trust case into Luxembourg’s tax deal with the global retailer Amazon, a deal secured while commission chief Jean-Claude Juncker was Luxembourg PM.
The 23-page document details the reasons why the EU commission thinks the tax deal may amount to illegal state aid as well as the complex company structure allowing it to put most profits into a non-taxable entity.