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Amazon wins £215m EU tax battle

Amazon wins £215m EU tax battle

On this episode of Talking Shop, we are joined by Sammy Allanson, Client Partner Lead for the North of England at business change and transformation specialist Sullivan & Stanley. We break down why the North is one of the UK’s most critical retail growth engines - and why conquering it requires deep local credibility rather than superficial corporate visibility exercises.

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Amazon has won its case against the EU Commission over a £215m tax battle in the European Court of Justice.

The Commission had alleged that Amazon had struck a deal with Luxembourg enabling the company to avoid 75% of its EU tax.

The ECJ dismissed the claims insisting it had not proved the deal “was a state aid that was incompatible with the internal market”.

The case was brought to the ECJ after lower court judges decided that the deal was not unlawful.

The court stated: “The Court of Justice confirms that the (European) Commission has not established that the tax ruling given to Amazon by Luxembourg was state aid that was incompatible with the (EU’s) internal market.”

Earlier this year it became clear that Amazon’s UK business paid £781m in direct taxes despite sales of £24bn.

Amazon stated: “We welcome the Court’s ruling, which confirms that Amazon followed all applicable laws and received no special treatment. We look forward to continuing to focus on delivering for our customers across Europe.”

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