Amazon reportedly pays no income tax on $55 billion in European sales in 2021

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Although Europe’s leading company saw sales rise to around $55 billion last year, the company has avoided paying income tax. It recorded a loss of 1.16 billion euros ($1.26 billion) and it even received 1 billion euros in tax credits. According to documents obtained by the credit was “essentially due to the use of net losses carried forward in accordance with the tax consolidation regime”.

The Amazon EU Sarl unit is headquartered 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% in 2021.

“Across Europe, we pay corporate taxes amounting to hundreds of millions of euros,” an Amazon spokesperson said. Bloomberg. They said income, profits and taxes are reported to local authorities in each country. The company said it posted a loss after opening more than 50 new locations across the continent last year.

Amazon has been the for years of the tax breaks it receives and the way it reports its income. In 2017, the European Union with a tax bill of 250 million euros ($280 million) for alleged illegal state aid practices dating back to the early 2000s. Amazon billed it last year. The European Commission has lodged an appeal against this decision with the Court of Justice of the European Communities.

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