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Because these large tech companies don't pay taxes currently. The current tax laws have a huge loophole in respect to large foreign internet businesses. Now the
by mola 7y ago
Because these large tech companies don't pay taxes currently. The current tax laws have a huge loophole in respect to large foreign internet businesses. Now they're trying to close that loophole.
- AdrianB1 7y agoI think it is impossible to sell anything in the EU without VAT, which is a much higher taxation rate than profit (not as percentage, but as money: VAT is 20-25% of the product or service price, profit can be as low as 1-5%. What the likes of Amazon, Google or Facebook are not paying is profit tax, pretending they have no profits. French companies that have no profits also don't pay profit tax.
- jadel 7y agoBefore the new VAT rules Amazon had a deal over VAT with Luxembourg, similar to the deal with Ireland on income tax. http://europa.eu/rapid/press-release_IP-17-3701_en.htm http://europa.eu/rapid/press-release_IP-17-3701_en.htm