Amazon Accused Of Exploiting VAT Loophole

It does not seem to be possible to go very long without another big name company seemingly embroiled in a tax avoidance loophole. Starbucks have already been accused in recent times, and it seems that Amazon are the latest company to be accused – of using a European tax loophole to pay less VAT on ebooks sold in Britain.

According to The Guardian newspaper, Amazon pays just 3% VAT on ebooks sold to UK customers instead of the 20% that it should.

Amazon is by far the biggest seller of ebooks in the UK, accounting for about 90% of ebooks sold in the United Kingdom.