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Germany is Amazon's biggest market outside North America, its
annual report shows, but until recently all sales and almost all
profits were reported via lightly taxed Luxembourg companies.
Amazon's main German operating unit, Amazon.de GmbH, manages the
German website and oversees deliveries but is funded by payments
from the Luxembourg companies.
Accounts filed in late April and only publicly available in
recent weeks, show Amazon.de made a profit of just 32 million
euros in 2014 and paid corporate income tax of 11.9 million
euros. Using the average exchange rate for 2014, that equates to
around $16 million in tax.
"Corporate tax is based on profits, not revenues. E-commerce is
a low-margin business and highly competitive, and Amazon
continues to invest heavily around the world, which means our
profits are low," an Amazon.de spokesman said.
The company said last week it had introduced changes in the
United Kingdom, Germany, Spain and Italy from May 1, so that
future sales would be booked in these countries.
Tax experts said the new arrangement could require Amazon to pay
more tax in future years.
($1 = 0.9173 euros)
(Reporting by Tom Bergin; Editing by Mark Potter)
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