Amazon UK pays £2.43m tax on £4.3bn sales

All sales from online retailer to British customers are routed through Luxembourg affiliate

Amazon received £2.5 million in grants from the British government in 2012.
Amazon received £2.5 million in grants from the British government in 2012.

Amazon. com's main UK unit paid taxes of £2.43 million ($3.7 million) on its 2012 income, despite group UK sales of £4.26 billion ($6.5 billion), its accounts published today showed.

The company received £2.5 million 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.

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Reuters