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Sure, but when we pay our AWS bills, that money still goes to Amazon which is US-based, even though we servers we rent are in Frankfurt.
by mort96 2y ago
Sure, but when we pay our AWS bills, that money still goes to Amazon which is US-based, even though we servers we rent are in Frankfurt.
- johntb86 2y agoDoes it actually go to the US corporation, or to some European subsidiary?
- Nemo_bis 2y agoFor hyperscalers, to some EU subsidiary first. Then it depends on the transfer pricing applied. https://en.wikipedia.org/wiki/Transfer_pricing https://en.wikipedia.org/wiki/Transfer_pricing You can tax the "intellectual property" payments that the subsidiaries make to the USA parent, or you can pick some other criterion. Or you can just create a new sales tax for any one part of the transactions you want. It's tricky but it can be done.