Amazon hands £ 492m from £ 20bn revenue to UK tax collectors

Amazon handed £ 492m ($ 678m) from a total revenue of £ 20bn ($ 27bn) to the UK tax office last year as the pandemic and blockade nitrocharged online sales.

Recent figures submitted to Companies House show that the UK Group’s total sales in 2020 increased from £ 13.73 billion ($ 18.93 billion) in 2019 to £ 20.63 billion.

Amazon taxes are often like a lightning rod of anger at Big Tech’s multinationals appearing to be evading UK taxes.

Amazon said in a statement on September 7 that it has invested more than £ 32 billion ($ 44 billion) in its UK business over the last decade.

The company also pays customers VAT and its employees.

Amazon has invested more than £ 1.6 billion ($ 2.2 billion) in its UK business amid a surge fueled by the blockade of online shopping.

Amazon said: “We are proud to make a significant financial contribution to the UK economy.

“For the future, we know that the UK is still full of opportunities and continues to have the potential to continue investing, creating jobs, developing talent and having a positive impact on communities across the country. I am excited.”

The publication of Amazon’s tax bill has created annoying optics for the conservative government, and just as the prime minister announced an increase in national insurance, some analysts have been effectively taxed since World War II. Is said to push up to the highest level.

Last year, the UK government imposed a 2% tax on digital sales amid growing concerns that big tech companies are making money through low-tax jurisdictions.

There is controversy over Amazon and its UK tax bill as the group officially reports UK retail sales through Luxembourg. Amazon UK’s services are only a small part of the UK’s overall business.

However, the tech giant emphasized that UK retail sales, related costs, profits, and taxes are recorded in the UK and will be reported and paid directly to HM Revenue and Customs.

Amazon’s UK workforce is now over 55,000, with an additional 10,000 jobs created so far this year, and more staff are being hired to meet the surge in demand.

For finance ministers in many countries, the ability of large multinational tech companies to follow the path of less tax denials and transfer profits to tax havens has long been a concern.

After eight years of talks, this year’s G7 has agreed on a collective solution that supports a minimum global corporate tax rate of at least 15%.

Facebook said it expects to pay more taxes in more countries as a result of the transaction.

PA and Reuters contributed to this report.

Simon Veazey

Simon Veazey

Freelance reporter

Simon Veazey is a UK-based journalist who has been reporting on the Epoch Times since 2006 on a variety of beats, from detailed coverage of British and European politics to web-based writing of the latest news.