Amazon receive £293m tax bill following rise in sales to £13.73bn
Today, Amazon have announced that they have paid £293m in tax in the UK last year, following a 26% surge in sales to £13.73bn.
A statement from the eCommerce giant read: “We are investing heavily in creating jobs and infrastructure across the UK – more than £23bn since 2010. We pay all taxes required in the UK and every country where we operate. Corporation tax is based on profits, not revenues, and our profits have remained low given retail is a highly-competitive, low margin business and we continue to invest heavily.”
Amazon employs more than 33,000 people across the UK, and has long been accused of not paying enough tax but its critics. This led to the Digital Sales Tax being introduced in the UK in April – to tackle the issue of the amount of tax paid by the world’s tech giants. However, the firm said the taxes paid today included business rates, corporation tax, stamp duty and other tax-related contributions.
The 2% tax on digital sales was introduced after complaints that Amazon and its fellow tech leaders (such as Google and Facebook) re-routing their profits through low tax jurisdictions in order to avoid large tax bills in the UK.