Purchasing Online – Is Amazon Really The Place to Go?

Posted on January 13, 2015 at 8:44 am

Amazon is a fantastic online shop to purchase quite literally anything. However, in recent years they have come under scrutiny on the tax dodging avoidance schemes that they may be employing to bypass the UK system.

This has made some users outraged. Amazon has generated £23bn in British sales in 2014 but it only made a total tax contribution of £3.2m in the previous year. This may seem a lot at start, but considering their sales of £23bn, this hasn’t even scratched the surface. The unfortunate news is that Amazon is doing nothing illegal and they are able to pay low tax because when shoppers in Europe buy from any of its local websites, the payment is taken by a subsidiary based in the low tax jurisdiction of Luxembourg, essentially bypassing the entire UK tax system. So perhaps think again when purchasing from this super giant to truly reflect if these types of organisations are also chipping into the pot.

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