By Jonathan Davies

Amazon is changing the way it reports its sales in a way that it likely to increase its tax bill.

Amazon is one of a number of multinational corporations to face huge criticism of its tax bill. The retailer previously used Luxembourg to record its sales, leaving it with a low tax bill.

But Amazon said that sales made through its subsidiaries in the UK, Spain, Germany and Italy will now be recorded in the corresponding country.

"More than two years ago, we began the process of establishing local country branches of Amazon EU Sarl, our primary retail operating company in Europe," the company said in a statement.

"As of 1 May, Amazon EU Sarl is recording retail sales made to customers through these branches in the UK, Germany, Spain and Italy.

"Previously, these retail sales were recorded in Luxembourg."

It also said that it is "working on opening a branch for France".