Home » Amazon generated 51.3 billion euros in 2021 but did not pay 1 euro in taxes

Amazon generated 51.3 billion euros in 2021 but did not pay 1 euro in taxes

As revealed by Bloomber, Amazon managed to enter Europe 51,300 million euros in terms of sales last year, and despite this, the company did not pay a penny of tax. As if that weren’t enough, even received 1,000 million euros in tax credits.

For this to be possible, it is stated that Amazon reported 1,160 million euros in losses in 2021which allowed the company not to pay income taxes and to receive said 1,000 million euros in tax credits.

Specifically, Amazon defended itself by stating that payment of taxes is not related to income, but to benefitsand that is why, when they present losses when expanding their business in Europe, they are exempt from taxes.

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The Luxembourg-based company posted revenue of €51.3 billion last year, up 17% from €43.8 billion in 2020. The unit, called Amazon EU Sarl, includes revenue generated from its email business activities in the UK, Germany, France, Italy, Spain, Poland, Sweden and the Netherlands.

“Across Europe, we pay hundreds of millions of euros in corporation tax,” an Amazon spokesperson told Bloomberg. As he said, “income, profits and taxes are reported to local authorities in each country”. The company said it posted a loss “after opening more than 50 new centers across the continent last year”.

“We are investing heavily in creating jobs and infrastructure across Europe – over €100 billion since 2010. Corporation tax is based on profits, not income, and the last year, Amazon EU Sarl recorded a loss as we opened over 50 new centers across Europe and created over 65,000 well-paying jobs, growing our permanent workforce in Europe to over 200,000 workers added the spokesperson.

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