Amazon to start paying ‘proper’ sales tax in Europe following increased pressure

Amazon to start paying ‘proper’ sales tax in Europe following increased pressure
Credit: Julie Clopper/Shutterstock

You know how massive corporations often find clever and completely legal ways of paying less tax than they really should despite it being a reprehensible and predatory way to do business with an entire nation?

Well, Amazon has caved into pressure from Europe and will soon start paying tax on items it sells in the UK and some other European countries, according to reports over the weekend.

It previously routed those transactions through Luxembourg, known as a favourable location for tax purposes, in order to pay a lower amount overall. However, as a result of changing its reporting procedures, it could now face higher tax bills in certain European countries, according to The New York Times. It could also find new ways to legally side-step those obligations, of course.

The change also moves Amazon out of the firing line for new regulations introduced last month in the UK, which would impose a 25 percent fine on organizations ruled to be artificially routing business overseas for tax reasons.

The European Union has been looking into the tax practices of companies like Apple and Amazon since last year to ascertain whether tax breaks essentially equate to state aid for the businesses. And if there were ever two businesses that didn’t seem to need state aid, I’d put Amazon and Apple on that list.

➤ Amazon to Stop Funneling European Sales Through Low-Tax Haven [The New York Times]

Featured image credit: Julie Clopper / Shutterstock.com

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