Amazon generated revenue of 51.3 billion euros in Europe, but did not have to pay a single euro in taxes. This anomaly is the result of its net result: the main division of the electronic commerce giant in the Old Continent has presented losses close to 1,200 million euros, according to Bloomberg .
The technology multinational combines the results of its main business in several European markets (United Kingdom, Germany, France, Italy, Spain, Poland, Sweden and the Netherlands) through its main parent company here, Amazon EU Sarl. Thanks to the losses that its operations showed last year, this firm has not had to pay a single euro in taxes on its income.
On the contrary, thanks to these financial results Amazon EU Sarl can now enjoy tax credits and other exemptions valued at 1,000 million euros.
At a global level, the giant announced in February a net profit of almost 30,000 million euros in 2021. However, in the presentation of those financial results, Amazon did not break down what figures the different markets on the planet in which its company is present had contributed. operative. It has been Bloomberg that has accessed the corporate documentation that shows these numbers.
The European parent company of Amazon, based in Luxembourg, is exempt from paying taxes on its income, despite the fact that these grew by 17% compared to the numbers it presented in the immediately previous year, 2020. In the year in which the pandemic broke out, Amazon recorded revenue of 43.8 billion euros. In 2021, it did 51.3 billion.
All in a context in which the forced confinements due to the coronavirus crisis triggered electronic commerce throughout the planet. After knowing these data in Bloomberg , a spokesman for the company has acknowledged to said medium that Amazon pays its taxes in all European markets, and that its business figures are disclosed directly to the national authorities.
In an article published last year on the company’s blog , the firm defended that in 2020 they paid more than 140 million euros in direct taxes, most of it as an employer. The indirect accounted for another 121 million.
Now, the spokesman for the e-commerce giant has emphasized in media such as Bloomberg that they pay figures in excess of “hundreds of millions of euros” in corporate tax, and defends that the tax credits that they will enjoy after their 2021 results It is precisely due to the losses they presented.
“We are investing heavily in creating jobs and infrastructure across Europe: more than €100 billion since 2010.” “Corporate tax is based on profits, not revenue, and last year Amazon EU Sarl made a loss as we opened more than 50 new centers across Europe and created more than 65,000 well-paying jobs.”
In 2020, Amazon invoiced 5,400 million euros in the Spanish market. It was learned after knowing the breakdown of the accounts of precisely Amazon EU Sarl. According to the Spanish Mercantile Registry, the giant in Spain operates with companies for its various activities: Amazon Online Spain, Amazon Spain Services, Amazon Data Services, Amazon Road Transport Spain and Amazon Spain Fulfillment.
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that’s what he is good at. From Major Investments to Stock Market Updates, he got ’em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.