Friday, November 30, 2012

EBay's double tax base prompts calls for investigation

Britain and Germany may have missed out on a combined $1 billion in sales tax since online marketplace eBay picked a tiny Luxembourg office as its base for EU sales, a shift that lawmakers say should now be investigated.

EBay's nomination of Luxembourg unit eBay Europe Sarl - with a staff of nine - as its provider of services to EU clients allows it to charge customers in Europe a low rate of sales tax, often known as Value Added Tax, helping it to compete against rivals.

http://www.reuters.com/article/2012/11/30/net-us-ebay-tax-europe-idUSBRE8AT0S720121130