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Neil · 10-03-2014, 15:00

It's all about tax avoidance. Amazon UK makes sure all it's UK profits are made by it's Luxenbourg company where they pay less tax. Paying less tax means their overheads are less so they can sell stuff for less and still make money.

It can be as simple as you buy a widget for £10 of Amazon UK, Amazon UK buy it for £9 from Amazon Luxembourg and Amazon UK has overheads for postage, packaging, staff etc equivalent to 99p for your item.
Amazon Luxembourg paid £5 for your item.
That means for your £10 item Amazon Luxemburg made £4 profit and Amazon UK made 1p profit.

Tax paid in UK on 1p profit
Tax paid in Luxemburg on £4 profit

10-03-2014, 15:00	#12
Neil Administrator Ace Driver Champion! Onslaught 2.1 Champion! Defender of the Holy Pig Champion! Join Date: Mar 2005 Location: Oswaldtwistle Posts: 17,103 Liked: 607 times Rep Power: 290757	Re: Currys It's all about tax avoidance. Amazon UK makes sure all it's UK profits are made by it's Luxenbourg company where they pay less tax. Paying less tax means their overheads are less so they can sell stuff for less and still make money. It can be as simple as you buy a widget for £10 of Amazon UK, Amazon UK buy it for £9 from Amazon Luxembourg and Amazon UK has overheads for postage, packaging, staff etc equivalent to 99p for your item. Amazon Luxembourg paid £5 for your item. That means for your £10 item Amazon Luxemburg made £4 profit and Amazon UK made 1p profit. Tax paid in UK on 1p profit Tax paid in Luxemburg on £4 profit __________________ Site Forum Rules/ Site Disclaimer can be seen from this link Last edited by Neil; 10-03-2014 at 15:04.