- Amazon.com Inc’s (NASDAQ: AMZN) main European retail business reported €1.2 billion ($1.2 billion) of losses in 2021, allowing the company to dodge taxes and win €1 billion in tax credits, Bloomberg reports.
- Luxembourg-based Amazon EU Sarl recorded sales of €51.3 billion in 2021, up 17% year-on-year.
- The unit recorded €37 billion of “raw materials and consumables” and €15 billion of “external charges,” leading to the annual loss, Bloomberg noted.
- “Across Europe, we pay corporate tax amounting to hundreds of millions of euros,” Amazon clarified. The €1 billion net tax benefit was mainly due to the use of net losses carried forward under the tax consolidation system.
- Amazon has acknowledged investment of over €100 billion since 2010 in creating jobs and infrastructure across Europe. In 2021, Amazon EU Sarl suffered a loss after opening over 50 new sites across Europe and creating over 65,000 well-paid jobs, taking its total European permanent workforce to over 200,000.
- The unit under European regulatory scrutiny won an appeal on a €250 million ($280 million) tax bill imposed after regulators said agreements with Luxembourg dating back to 2003 amounted to illegal state aid.
- Price Action: AMZN shares traded lower by 1.88% at $3,102.77 on the last check Wednesday.
