17% growth in 2021

Amazon reports record revenue, skips taxes

2021 is a new record year for Amazon EU. (Photo: Shutterstock)

2021 is a new record year for Amazon EU. (Photo: Shutterstock)

The year 2021 was very good for Amazon EU, whose headquarters are in Luxembourg, with its turnover up by 17% compared to 2020. This is especially true when the negative net result after tax offers a tax credit of €1bn.

Amazon EU, a Luxembourg-based company that encompasses the e-commerce giant’s operations in Germany, France, the Netherlands, the UK, Sweden, Poland, Italy and Spain, reached revenues of €51.32bn in 2021, according to information leaked by Bloomberg. This is a 17% increase compared to the €43.9bn registered the previous year.

For the fifth year in a row, the branch’s net result after tax is €1.08bn; it was €1.1bn in 2020. 

Amazon paid no income tax after posting losses of €1.16bn in 2021. A spokesperson told Bloomberg that the company was not require to pay taxes as the losses came on the back of investments in infrastructure and jobs. The company benefitted from a tax credit of €1bn.

An Amazon spokesman stated that “we pay corporate tax amounting to hundreds of millions of euros” across Europe.

On a global level this time, Bloomberg reports that Amazon posted a profit of $33.4bn last year, up from $21.3bn the year before.

However, Amazon last year won a round of the tax battle with the European Commission, which had demanded that Luxembourg recover $250 million, an amount seen as state aid. The commission has appealed and the case is still pending.

Amazon in 2021 also succeeded in its appeal to the administrative court against part of a sanction imposed by the data protection watchdog CNPD amounting to €746m and an additional €746,000 per day for non-compliance. The was was suspended over imprecise wording.

This story was first published in French by Paperjam. It has been translated and edited for Delano.