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Amazon to pay taxes on sales in France

The Local/AFP · 26 May 2015, 11:50

Published: 26 May 2015 11:50 GMT+02:00

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Amazon's tax agreement in Luxembourg, under which it recorded European sales and paid taxes on them in the tiny country instead of at the source, had attracted howls of criticism that the giant was trying to evade taxes, and had sparked an EU probe.
The US company finally announced its response on Tuesday, stating that it had recorded sales declarations since May 1st in France, as well as in Germany, Italy, Spain, and the UK.
"More than two years ago we began the process of establishing local country branches of Amazon EU Sarl, our primary retail operating company in Europe," the company said in a statement.

"As of May 1st, Amazon EU Sarl is recording retail sales made to customers through these branches in the UK, Germany, Spain and Italy," the company said in a statement.

"Previously, these retail sales were recorded in Luxembourg. We are working on opening a branch for France.

Amazon is among several large companies under the spotlight in Europe over tax deals in Luxembourg and elsewhere.
The EU is investigating tax deals involving US tech giant Apple in Ireland, coffee-shop chain Starbucks in the Netherlands, and Amazon and Italian automaker Fiat in Luxembourg.
Amazon has had its share of problems with France in the past.
In July last year, it hit back at a law banning it from offering free deliveries in France by charging customers just one centime (1.4 cents) for books dispatched to their homes.
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A French minister accused the online store of "destroying bookshops".

The Local/AFP (news.france@thelocal.com)

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