By Jonathan Davies
Amazon's UK business paid just £11.9 million in corporation tax this year, according to company figures.
Amazon.co.uk recorded a profit of £34.4m, so the figures do match up. However, Amazon's Luxmebourg unit made £5.3 billion from UK sales, but paid no tax.
But Amazon.co.uk makes clear its claims that it does not sell to online shoppers in the UK, something that is done by the Luxembourg based company.
Instead, the majority of Amazon.co.uk's £679m turnover comes from “fulfilment and corporate support services” to the Luxembourg business.
The £5.3bn UK sales were taken through the Luxmebourg Amazon EU Sarl company. The same company was also used for sales across Europe. And like the UK, it didn't have to pay tax in the respective countries.
Amazon has been one of the key businesses highlighted in controversial schemes used by tech companies to divert sales and profits out of major economies to avoid paying tax.
Such schemes have prompted a UK and worldwide crackdown on corporate tax avoidance.
But last month, Amazon quietly revealed plans to stop using Amazon EU Sarl to pool its European sales. Instead it is opening branches in respective European countries, which will be liable to pay tax. It means that, for the first time since 2004, all sales from UK online shoppers will be taxed in the UK.