Although Amazon’s main European business saw an increase in sales to around $55 billion last year, the company avoided paying income tax. It posted a loss of €1.16 billion euros ($1.26 billion) and it even received €1 billion in tax credits. According to filings obtained by Bloomberg, the credit was “mainly due to the use of net losses carried forward in accordance with the tax consolidation system.”
The Amazon EU Sarl unit is based in Luxembourg and reports revenue from its divisions in the UK, Germany, France, Italy, Spain, Poland, Sweden and the Netherlands. Its sales increased by 17 percent in 2021.
“Across Europe, we pay corporate tax amounting to hundreds of millions of euros,” an Amazon spokesperson told Bloomberg. They said revenue, profit and tax are reported to local authorities in each country. The company said it posted a loss after opening more than 50 new sites across the continent last year.
Amazon has been the subject of criticism for years for tax breaks it receives and how it reports income. In 2017, the European Union slapped Amazon with a €250 million ($280 million) tax bill over alleged illegal state aid practices dating back to the early 2000s. Amazon successfully appealed the bill last year. The European Commission has filed an appeal against that decision in the European Court of Justice.