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Amazon's UK Unit Pays $3.7 Million In Taxes On $6.5 Billion In Sales

You Won't Believe How Little Amazon Pays In UK Taxes
Reuters
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A logo sits on a wall outside the Amazon.co.uk Marston Gate 'Fulfillment Center,' the U.K. site of Amazon.com Inc. in Ridgmont, U.K., on Monday, Dec. 3, 2012. U.K. consumer confidence unexpectedly increased to an 18-month high in November as Britons become more optimistic about the economy and their finances, GfK NOP Ltd. said. Photographer: Simon Dawson/Bloomberg via Getty Images
A logo sits on a wall outside the Amazon.co.uk Marston Gate 'Fulfillment Center,' the U.K. site of Amazon.com Inc. in Ridgmont, U.K., on Monday, Dec. 3, 2012. U.K. consumer confidence unexpectedly increased to an 18-month high in November as Britons become more optimistic about the economy and their finances, GfK NOP Ltd. said. Photographer: Simon Dawson/Bloomberg via Getty Images

By Tom Bergin

LONDON (Reuters) - Amazon.com's main UK unit paid taxes of $3.7 million on its 2012 income, despite group UK sales of $6.5 billion (4 billion pounds), its accounts published on Wednesday showed.

The company received 2.5 million pounds in government grants during the year.

Amazon.co.uk Limited reported the miniscule corporate income tax bill because all sales to British customers are routed through a Luxembourg affiliate, which pays the UK unit fees to cover its costs.

Amazon was not immediately available for comment but has previously said it follows the tax rules in every country where it operates.

($1 = 0.6554 British pounds)

(Reporting by Tom Bergin; editing by Keiron Henderson)

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