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
Shutterstock

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.

 

Apple

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

Régis Degelcke new EuroCommerce president

22/06/2018

Régis Degelcke is the new president of EuroCommerce. The chairman of Auchan will start his three-year mandate in July.

Tom&Co eyes 100 French stores

21/06/2018

Belgian pet shop chain Tom&Co continues its expansion in France with the opening of its 25th French store in Nantes. With a new concept, the chain hopes to be able to quickly expand to 100 stores in France.

France wants e-commerce tax

21/06/2018

If the French government get their way, the Hexagon will soon introduce a tax on e-commerce. Products would become 1 to 2 % more expensive, depending on the distance of the last delivery.

Toy store chain La Grande Récré pulls plug on Belgium

20/06/2018

French toy store chain La Grande Récré has decided to focus on the French market and to close its Belgian branch, due to continuing financial difficulties. 16 stores will close, causing a job loss of 95.

Microsoft builds competitor for Amazon Go

14/06/2018

Microsoft is working on its own technology that should render checkouts in stores obsolete. The American company says it wants to be an ally for the retail sector, mostly in its struggle against Amazon Go.

Join us for Europe’s largest retail and e-retail event!

12/06/2018

(advertorial) The fourth edition of Paris Retail Week will take place September 10 – 12, 2018 in Pavilion 1 at Paris Expo Porte de Versailles. For three days, Paris will be the capital of experiential and connected commerce, bringing together 800 participating companies and 40,000 retail and e-commerce professionals.