- Online retailer Amazon has not taken advantage of unauthorized tax credits in Luxembourg.
- This is the conclusion of the European Union Court and thus overturns a decision of the European Union Commission. This had required Amazon to pay about 250 million euros in taxes in addition to interest.
- According to the court, the commission was unable to prove that Amazon wrongly took advantage of the tax benefits.
A spokesperson for Brussels said Brussels had not been able to prove that the tax burden of a European subsidiary of Amazon had been wrongly reduced.
Brussels will likely resume
The request in the Amazon case was determined by the European Union Commission in 2017 after it came to the conclusion in the course of an examination that Luxembourg had granted the company anti-competitive benefits from May 2006 to June 2014 in order to bind it itself. The bottom line is that Amazon has not paid taxes on three-quarters of its profits from European Union sales.
The European Union Commission is unlikely to accept the ruling. The Commission responded immediately and announced that it was keeping an appeal against the EU court ruling on tax benefits for online retailer Amazon. “We will carefully examine the ruling and look at other possible steps,” said Vice President Margaret Westager, responsible for competition issues, in Brussels. Tax benefits granted only to select multinational companies harm fair competition in the European Union. “All companies must pay their fair share of the tax,” says Vestager.
The Brussels authority is already defending itself before the European Court of Justice against a ruling in which the European Union court ruled to quash Ireland’s request for a tax refund of up to 13 billion euros from Apple, the maker of iPhones. It also has the right to object in the Amazon case.
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