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EU: Amazon tweaks tax practices amid scrutiny

By  |  May 25, 2015

Amazon.com has begun paying tax on its retail sales in individual European countries, instead of funnelling all sales through low-tax Luxembourg, in a restructuring of its European business practices.

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    The move puts pressure on other American technology companies, such as Google and Apple, who face intense scrutiny of their corporate tax practices in Europe.

    Amazon has begun booking revenue by country in some of its biggest markets, including the U.K., Germany, Italy and Spain. The practice began on May 1 and will roll out across other European operations.

    The move could significantly increase Amazon’s tax bill in many EU countries. It did not acknowledge whether it was responding to pressure from regulators.

    “We regularly review our business structure to ensure that we are able to best serve our customers and provide additional product and services,” a company spokesman told the Wall Street Journal.

     

    Full content: The Wall Street Journal

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