Amazon UK pays $3.7 million tax on $6.5 billion sales

Amazon UK pays $3.7 million tax on $6.5 billion sales

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A worker is seen in the Amazon.co.uk warehouse in Milton Keynes, north of London November 17, 2006.

Credit: Reuters/Dylan Martinez

By Tom Bergin

LONDON | Wed May 15, 2013 6:34am EDT

LONDON (Reuters) - Amazon.com's main UK unit paid taxes of $ 3.7 million on its 2012 income, despite group UK sales of $ 6.5 billion (4 billion pounds), its accounts published on Wednesday showed.

The company received 2.5 million pounds in government grants during the year.

Amazon.co.uk Limited reported the miniscule corporate income tax bill because all sales to British customers are routed through a Luxembourg affiliate, which pays the UK unit fees to cover its costs.

Amazon was not immediately available for comment but has previously said it follows the tax rules in every country where it operates.

($ 1 = 0.6554 British pounds)

(Reporting by Tom Bergin; editing by Keiron Henderson)

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