The European part of Amazon had a turnover of 51.3 billion euros last year, but experienced a profit deficit of 1.2 billion euros. Thus, the company does not need to pay income tax.

The company will also receive tax benefits of 1 billion euros, Bloomberg reports based on these documents.

Turnover increased by 17 percent

The turnover of the European retail branch, located in Luxembourg, increased by 17 percent annually. Amazon EU Sarl covers sales made in the Netherlands, UK, Germany, France, Italy, Spain, Poland, and Sweden.

Documents seen by Bloomberg provide insight into Amazon’s regional finances. In 2021, the group had revenue of $33.4 billion, compared to $21.3 billion in the previous year. The company does not break down e-commerce revenue and sales by country.

‘Losses partly due to new jobs’

Amazon responded that it pays corporate taxes throughout Europe. This would involve hundreds of millions of dollars. The 1 billion euros in tax benefits that Amazon will enjoy will be linked to the settlement of losses as permitted by the rules.

“Last year, Amazon EU Sarl experienced a loss as we opened more than 50 new locations across Europe and created more than 65,000 high-paying jobs,” the spokesperson told Bloomberg. Amazon now says it employs more than 200,000 people in Europe.

Tax lawsuit

Amazon has been under scrutiny by European regulators for some time over its tax payments. The American company previously won an appeal against a tax assessment of 250 million euros. This was imposed by regulators because they believed that the agreement with Luxembourg since 2003 constituted illegal state aid.

The European Union’s second highest court disagreed. The European Commission then appealed.