Amazon needs to pay Europe 250 million euros in back taxes | RetailDetail

Amazon needs to pay Europe 250 million euros in back taxes

Amazon needs to pay Europe 250 million euros in back taxes

The European Commission had some bad news for American Amazon: it needs to pay an additional 250 million euro in taxes because the Commission feels it enjoyed illegal state aid from Luxembourg for many years.

Lower profit

The investigation into this case of illegal state aid was launched three years ago and focused on Amazon’s 2003 arrangement with the Grand Duchy of Luxembourg. Amazon was able to lower its European profit through two Luxembourg subsidiaries.


The European Commission now ruled that those arrangements are illegal and that Amazon needs to pay 250 million euro in taxes because of what it managed to avoid in taxes through the arrangement.



This means Amazon is the European Commission’s next target in its battle against illegal state aid. Apple was already informed it would need to pay 13 billion euro in late taxes, after its arrangement with Ireland was deemed illegal. Starbucks and Fiat have faced similar convictions and a total of 35 countries have also been forced to pay late taxes.


It is possible the American government may appeal Europe’s decision, because during president Obama’s reign, the country also protested the Apple case, because it felt Europe appropriated money that was meant for the American Treasury.

Questions or comments? Please feel free to contact the editors

Gerelateerde items

Not everyone is pleased with new European warranty guidelines


The European Parliament approved a proposal to harmonize warranties all across Europe, but not everyone is satisfied with the content.

The world's first start-up supermarket, KaDeTe, opens in Berlin


The world’s first startup supermarket, KaDeTe, will open its doors in Berlin next month. The physical marketplace will give young brands and companies an opportunity to engage consumers and buyers.

"Not a major surprise" if Unilever were to choose Rotterdam


The Financial Times believes Rotterdam is in pole position to become the British-Dutch Unilever’s new main office, instead of London. The business paper claims the information comes from political insiders.

Record results for Henkel


German Henkel experienced a strong 2017, with record numbers for both its profit and turnover. The company managed to surpass the 20 billion euro turnover milestone for the first time.

Go Sport divulges major international plans


French sports retailer Go Sport, which has twelve stores in Belgium, has very ambitious expansion plans. Spain and Poland are its European targets, but it will also focus on Morocco and India.

American chains consolidate to fight Amazon


American retailer Albertsons has acquired its competitor Rite Aid, after the latter had already sold a series of stores to Walgreens. The acquisitions are mainly a reaction to Amazon and other online players’ onslaught.

Back to top