Amazon pays £290m in UK tax as gross sales surge to £14bn

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Online retail big Amazon paid £293m in tax within the UK final 12 months, whereas its gross sales surged 26% to £13.73bn.

The agency, which employs 33,000 individuals within the UK, mentioned the taxes included enterprise charges, company tax, stamp responsibility and different contributions.

Amazon and different tech corporations have confronted scrutiny over how a lot tax they pay within the UK, prompting the federal government launch a troublesome new digital gross sales tax in April.

Amazon mentioned it pays “all taxes required within the UK”.

“We are investing closely in creating jobs and infrastructure throughout the UK – greater than £23bn since 2010,” the corporate mentioned in an announcement.

“We pay all taxes required within the UK and each nation the place we function,” it mentioned.

“Corporation tax is predicated on earnings, not revenues, and our earnings have remained low given retail is a highly-competitive, low margin enterprise and we proceed to speculate closely.”

In April, the UK launched a 2% tax on digital gross sales amid issues that huge tech corporations we re-routing their earnings via low tax jurisdictions.

Defending the plan, Chancellor Rishi Sunak mentioned in June that the coronavirus disaster had made tech giants even “extra highly effective and extra worthwhile”.

He added that corporations like Google, Amazon and Facebook wanted “to pay their justifiable share of tax”.

Amazon has been increasing within the UK this 12 months, as extra individuals store on-line as a consequence of lockdown restrictions.

The firm mentioned final week it might create an additional 7,000 UK jobs this 12 months to fulfill rising demand, taking its whole everlasting workforce to 40,000 by the tip of the 12 months.

It can be recruiting 20,000 seasonal posts for the festive interval.

Amazon is led by world’s richest man Jeff Bezos, whose private fortune rose as excessive as $200bn (£155bn) in current weeks as tech corporations’ inventory market valuations soared.

The firm as a complete posted sales of $281bn for 2019 and internet earnings of $11.6bn.

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