EU investigates Amazon's tax affairs | AccountingWEB

EU investigates Amazon's tax affairs

Amazon's tax arrangements have come under renewed scrutiny after European officials demanded that Luxembourg hand over documents relating to the online retailer's tax affairs, the Financial Times reported.


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The VAT Doctor's picture

Very sweet deal

The VAT Doctor | | Permalink

Just hearsay, but I have heard that a certain Californian company negotiated a special VAT rate of below 15% in Luxembourg, being a blended VAT rate for electronic sales plus publishing services (3%).  Seems right for the EU to look at this and of course, from 2015, the UK will enjoy the largesse of the VAT on these sales.

Scrap corporation tax!

Dutchnick | | Permalink

Corporation tax has become almost optional if you are international and smart. Millions are paid to adviser worldwide to circumvent these taxes so scrap them (4.8% of UK tax take?)and replace them with a registration fee based on turnover. For the UK the business generated would be huge, every tax haven would become irrelevant and when you have a chance to be located in a juristriction where the courts and rule of law works well you have a good chance of substantial business and jobs being created.

ShirleyM's picture

Please explain

ShirleyM | | Permalink

Amazon's latest accounts show that its tax-efficient structure in Luxembourg reduced the company’s overall tax rate by 8% last year to 31.8%.'

I'm sorry, but I don't understand this statement. What is 'overall' tax rate? Luxembourg does not have a 39.8% CT rate .... does it? If so, why is it better to transfer tax liabilities there?

True culprit    1 thanks

simonwwhitt | | Permalink

And who was at least in part instrumental in devising the legislation that enables Luxemburg to host all of these dodgy tax deals - step forward please Mr Juncker and receive the praise that is due to you for this piece of international tax sabotage that so disadvantages your fellow EU members.