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Retail giant Amazon alters tax accounting

amazonAmazon could be changing its stripes by altering the way it records sales.

The move appears to come during the course of a formal EU investigation, opened last year, to consider the tax arrangements between Amazon and Luxembourg.

Transactions carried out in Europe had all been recorded in Luxembourg. There Amazon enjoyed a low-tax agreement.

As of 1 May, sales made through subsidiaries in the UK, Germany, Spain and Italy will be registered in those countries, the firm has said.

It said in a statement that it had been establishing the local country branches for more than two years and it is still working on one for France.

The changes could mean that the wealthy retail giant could have to pay more tax.

Fierce criticism has focussed on the company’s tax avoidance techniques among customers and governments.

In recent years, the EU has launched investigations into various tax deals between global companies and some countries, including Ireland, Luxembourg and the Netherlands. It suspects that such deals amount to illegal state aid and distort competition.

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