Dive Brief:
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Amazon will begin to pay higher taxes in France, the U.K., Germany, Spain, and Italy, the e-retail giant said on Sunday.
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Although Amazon said the move was planned, it is widely seen as a response to a report last year known as Lux Leaks detailing how several companies legally avoid taxes on retail sales in several European Union companies by funneling sales through Luxembourg, the Netherlands, and Ireland.
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Amazon wouldn’t say whether its policy change was the result of pressure from the E.U. or European countries.
Dive Insight:
Google, Amazon, and others are increasingly under pressure to pay more taxes in Europe. The spotlight was shined on some of these companies' tax breaks last year, making things more difficult both for the companies avoiding taxes and the countries sheltering their otherwise taxable sales.
Amazon’s move could indicate a shift, and that could have implications over in the U.S. as well. The U.S. has increasingly made it more difficult for American retailers and other companies to headquarter their operations in Europe and elsewhere to avoid taxes here.