Amazon will start paying taxes in a number of European countries instead of routing sales through Luxembourg, a well-known low-tax haven.
The Seattle retailer is one of many American tech giants that employs complicated tax strategies in Europe to lower expenses. Others that have faced criticism, include Google and Apple.
The New York Times reports that on May 1, Amazon started reporting revenue from its operations in Britain, Germany, Italy and Spain. It’s unclear how the change will immediately impact the company’s financials. It may result in paying higher taxes, or there may be other ways to reduce its tax burden.
In a statement provided to the New York Times, Amazon said: “We regularly review our business structure to ensure that we are able to best serve our customers.” Amazon also said these changes started to go into effect more than two years ago.
Based on a 2013 report, which is the most recently available information, the company’s European revenue totaled $15 billion.