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Amazon restructures to pay corporation tax on UK sales

Amazon has abandoned a complex tax structure which enabled it to substantially decrease its UK tax rates on sales.

The e-commerce giant previously operated a complex corporate scheme which saw it taxed for UK sales in Luxembourg where rates were vastly lower.

As of 1 May however, Amazon opened a London branch in Luxembourg enabling HM Revenues and Custom to collect fees based on UK sales.

A spokesman said Amazon was “now recording retail sales made to customers in the UK through the UK branch. Previously, these sales were recorded in Luxembourg”.

"As of May 1, Amazon EU Sarl is recording retail sales made to customers in the UK through the UK branch. Previously, these retail sales were recorded in Luxembourg.”

The move pre-empts the 25 per cent fee now imposed upon oversea profits as part of George Osborne’s diverted profits tax.

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