Home > Latest News > Amazon Paid No Tax On $74 Billion In Sales

Amazon Paid No Tax On $74 Billion In Sales

Some truly crafty accounting has allowed Amazon’s European retail business to report 1.16 billion euros (A$1.69 billion) in losses for 2021.

This not only meant the business paid zero income tax on A$73.69 billion in sales, but they will also receive 1 billion euros in tax credits.

Sales were up in 2021 for the Luxembourg-based business, named Amazon EU Sarl, which reported a 17 per cent jump to sales of 51.3 billion euros across its e-commerce hubs in the UK, France, Germany, Spain, Italy, Sweden, Poland and the Netherlands.

Not surprisingly, European regulators have tried to stop Amazon from profiting from such slippery tax arrangements. The regulator tried and failed to impose a $376.5 million tax bill, claiming its Luxembourg setup “amounted to illegal state aid.”

“Across Europe, we pay corporate tax amounting to hundreds of millions of euros,” an Amazon spokesperson said.

Its tax credits are “mainly due to the use of net losses carried forward in accordance with the tax consolidation system”, according to the spokesperson.

“We are investing heavily in creating jobs and infrastructure across Europe – more than 100 billion euros since 2010.

“Corporation tax is based on profits, not revenues, and last year Amazon EU Sarl made a loss as we opened more than 50 new sites across Europe and created over 65,000 well-paid jobs, taking our total European permanent workforce to over 200,000.”

You may also like
Woolworths Buys MyDeal, Takes On Kogan, Catch
Alexa Finds Her Way Onto Googles Nest Cameras
Amazon Sues Over Fake Reviews
Xbox Streaming Capabilities Further Bolstered By New Streaming Stick
Microsoft Ordered To Unfreeze Russian Banking Files