Amazon will pay taxes in the UK

Photo: Graeme Robertson / the Guardian

Amazon decided to design goods for the British in the UK itself, not in Luxembourg. As a result, Amazon will pay taxes to the British budget in full. Registration of retail sales to British customers through the British branch began on May 1, writes Kommersant. Amazon will move to a similar scheme of work in other European countries.

At the same time, the company believes that the increase in the level of tax payments to countries where Amazon divisions are working should not be expected. The reason is that taxes are calculated from the company's profit, not from revenue. At the same time, e-commerce is a relatively low-profit business, Amazon representatives say, and as a result of constantly investing in investments all over the world, the company's profit decreases even more.

As for the UK, previously almost all of the company's profits went to Luxembourg, where Amazon is registered for more than 11 years. In the UK received a small fraction of tax deductions. For example, in 2013, the volume of company taxes paid in the UK was only £ 4.2 million. However, this year sales of goods in Britain brought Amazon £ 4.71 billion, and almost all taxes from this amount went to Luxembourg. The reason is that Luxembourg has a preferential tax regime.
')
Most likely, the reason for the change in the scheme of paying taxes for Amazon is the adoption of a new law on the introduction of tax on tax derived from the UK. This law obliges companies that take profits abroad to pay 25% tax in order to reduce tax costs. Corporate tax in the UK is now 20%.

Most likely, other large companies will follow the example of Amazon, including Google and Apple.