Amazon to Lose Tax Advantage After EU Orders Change

October 25, 2012

Amazon is to be stripped of its huge tax advantage on the sales of electronic books after the European commission ordered Luxembourg to close a VAT loophole. Amazon is registered as a Luxembourg company and pays that country’s VAT charge of 3% when it sells an ebook to a British reader, rather than the 20% it would have to charge if it were UK-based.

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