British media outlets have pounced on Amazon and eBay for how much the companies pay — or don’t pay — in UK taxes. Amazon reportedly forces British publishers to cover a 20 percent VAT — value added tax — charge on ebook sales. This is seen as problematic because Amazon’s European headquarters is in the tiny nation of Luxemburg, which charges the company just a 3 percent VAT. Thus, Amazon collects far more for the VAT than it has to pay.
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Amazon, eBay Called Out for UK Tax Practices
Posted by: David Vranicar October 22, 2012 09:16 AMBritish media outlets have pounced on Amazon and eBay for how much the companies pay — or don’t pay — in UK taxes. Amazon reportedly forces British publishers to cover a 20 percent VAT — value added tax — charge on ebook sales. This is seen as problematic because Amazon’s European headquarters is in the tiny nation of Luxemburg, which charges the company just a 3 percent VAT. Thus, Amazon collects far more for the VAT than it has to pay.