Amazon pays no European corporation tax despite record sales last year
Amazon reportedly did not pay any corporation tax in Europe last year despite reporting record sales, raising fresh questions over the ecommerce giant’s tax planning.
The US firm, which has its European headquarters in Luxembourg, recorded sales income of €44bn (£38bn) in the region last year but reportedly not have to pay any corporation tax to the Grand Duchy.
Its latest financial filings showed that the Luxembourg division made a €1.2bn loss, despite the record sales, and therefore did not have to pay tax, the Guardian reported.
Amazon’s European unit was also granted €56m in tax credits it can use to offset tax bills if it turns a profit in future.
The newspaper reported that the company has €2.7bn worth of carried forward losses stored up, which can be used against tax due on future profits.
Last month Amazon posted record first quarter profits of $8.1bn in total after making $13,000 in sales every second.
It also signalled that consumers would keep spending in a growing US economy and converts to online shopping are not likely to leave.
While brick-and-mortar stores closed, Amazon has now posted four consecutive record quarterly profits, attracted more than 200m Prime loyalty subscribers, and recruited over 500,000 employees to keep up with surging demand.