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EU tax reform proposal could hurt Amazon

Published 10/03/2017, 10:08 AM
© Reuters.  EU tax reform proposal could hurt Amazon
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  • The EU will propose sales tax changes tomorrow that could hurt Amazon (NASDAQ:AMZN).
  • A draft document will propose setting VAT for cross-border trades according to the buyer’s location, not the seller’s.
  • Companies suing low VAT rate countries for a base would no longer have that incentive, which could return “billions of euros of tax revenues” to some EU states per year.
  • Amazon is based in Luxembourg due to the low VAT rate.
  • The EU plans to make new VAT rate reform proposals in November.
  • Legislative proposals on taxes need the backing of all 28 EU states to become law.
  • Previously: Amazon Echo calling features roll out in Europe (Oct. 3)
  • Now read: The Most Overhyped Company In The World

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