Amazon Begins Recording Transactions in Individual European Countries
May 28, 2015
On May 1, Amazon began recording its transactions in Europe in the jurisdiction where they were made, according to a statement from the company. The Seattle-based e-commerce giant had faced criticism from the EU in the past for recording all its European transactions in the tax haven of Luxembourg. Now, transactions made on Amazon’s European subsidiaries in Germany, Italy, Spain and the U.K. will be recorded in those countries, probably resulting in the company paying more in taxes.
“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 1 May, Amazon EU Sarl is recording retail sales made to customers through these branches in the U.K., Germany, Spain and Italy.”
Last year, the European Commission launched a formal investigation of Amazon’s Luxembourg tax deal. In its statement, the company said the move was part of a regular review of its business practices.