Blog Archive

About Me

ProJ
View my complete profile
Monday, April 16, 2012

postheadericon How Amazon finds tax loopholes

5:34 AM | Posted by ProJ | | Edit Post

Company

U.S. Map shows states in red, yellow or green to warn executives that the law could result in tax collection

Amazon founder Jeff Bezos has always had a keen interest in tax planning. From the beginning, the differences were a key part of Amazon's ability to undercut rivals on price. When the establishment of the company, Bezos even considered it based on an Indian reservation near San Francisco to take advantage of tax loopholes in the state.

retailer in the world's leading Internet collects sales tax of only five states, taking advantage of a court ruling in 1992 that U.S. companies without a physical presence - like a store or warehouse - in a state can not be required to collect their sales taxes. Amazon has a map of each U.S. state of red, yellow or green. Executives who travel to the red states need the permission of the company before entering, if your actions trigger the laws that force Amazon to collect taxes not.

Amazon UK managing director, Christopher North, said in a radio interview recently that the company benefits from lower corporate tax is based in Luxembourg, will pay 20% of the value added rate of UK tax.

"The products we sell and ship to customers who pay the UK VAT rate," said North.

But he acknowledged that it only applies to physical products - and books are zero rated. Tax on e-books is the rate fixed by Luxembourg, which has challenged the European orientation. Instead of applying the tax to the national VAT rate, it takes only 3%, on the grounds that, like printed books, electronic publications are of cultural significance.

  • This is important because the E-book sales are booming. Worldwide, Amazon now sells 115 to 100 electronic books paperbacks. About 1.3 million e-readers have been purchased in the UK this Christmas, according to the pollster YouGov, 95% were made by Amazon Kindle.
  • In the UK, the commercial title of the Amazon bookstore estimated that controls at least 70% of the electronic book market, which is estimated at 500 million pounds in 2012, from £ 150m last year.
  • The British government is under pressure to reduce VAT on e-books from scratch, in line with print titles that are sold tax free. "This is the year to get sorted VAT," says deputy director of the library, Philip Jones. "In 2012, he became a number that is given to the Treasury, or not, in the case of the Amazon. "
a rate of zero during the night will be delivered as Waterstones UK retailers and small independent bookstores, with a border price of 3% of the Amazon and the second largest seller of eBooks UK, Apple iTunes, which also has its European headquarters in Luxembourg.

Amazon was founded in 1995 as an online bookstore, but the "average" sales have formed the smallest portion of their income since 2010. Last year, sales of media worldwide increased 20% to $ 17.8bn (£ 11.2 billion), but sales of other goods rose a staggering 56% to U.S. $ 28.7bn. She now earns more money from the sale of a variety of layers, televisions and golf clubs that makes reading materials, videos and music.

The biggest

Amazon has used acquisitions to diversify, spending $ 540 million in diapers.com baby supply store, buy shoes eTailer U.S., Zappos, and Woot, a site which offers daily offers on everything from shirts to wine.
Diversification has had spectacular results. Net sales increased 41% to U.S. $ 48 billion in 2011. Amazon now has 164 million active registered account holders. Even his band data hosting business - rent server space to other businesses - is one of the largest in the world


Find best price for : --Amazon----Jeff--

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)