Amazon was awarded €241m in tax credits last year which can be deducted from bills it receives for its European arm of the business.
Amazon Europe, based in Luxembourg, received the tax relief after registering a pre-tax loss of €493m (£441m) in 2018; however, sales rose 11.6% to €28bn (£25bn).
The online retailer said the loss was due to a €7.4bn (£6.6bn) investment in new fulfilment centres, head offices and services for customers across Europe.
Amazon – founded by Jeff Bezos – is also said to have paid out €114.3bn (£102bn) in royalty and licence payments to its affiliated businesses.
Authorities in Brussels made continued efforts to ensure the online goliath pays more tax, according to The Guardian.
The European Commission is chasing Amazon for more than €250m (£223.6m) over illegal tax advantages in Luxembourg. Legislators in Europe are cracking down after years of Amazon paying a low rate of tax in comparison to its profits.
Amazon paid just €55m (£49m) in tax on European revenues of €24.9bn (£22bn), and €16.5m (£14.7m) on sales of €21.6bn (£19.3bn) in 2016.
A spokesperson for the company told The Guardian: “Amazon pays all the taxes required in every country where we operate.
“Corporate tax is based on profits, not revenues, and our profits have remained low given our heavy investments and the fact that retail is a highly competitive, low-margin business.”
No comments yet