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It depends. If they sell it to a business they don't pay VAT at all. For sales to consumers they would now pay the customer's country , I believe that just cha
by matt4077 10y ago
It depends. If they sell it to a business they don't pay VAT at all.
For sales to consumers they would now pay the customer's country , I believe that just changed about a year ago. Amazon and Luxembourg may or may not have been responsible for that change :)
- occamrazor 10y agoTo be precise, the Luxembourg loophole was in force only for digital goods.
- matt4077 10y agoReally? I seem to remember that they paid VAT to Luxembourg, but had made a pretty good deal with the authorities that reduced their effective VAT rate to below 1%.
- occamrazor 10y agoI think it applied only to Prime and to mp3's, at least after 2008 or so. This was also the reason why Skype, eBay and others had their European HQ in Luxembourg. OTOH books had reduced VAT in most countries.