Originally Posted by murraypaul
The publishers aren't paying VAT....
Amazon is forcing publishers to discount their products based on the idea that Amazon is paying a 20% VAT. I.e. it's coming out of the publisher's cut.
The phantom VAT charge is going into new contracts. And it's not just the Big Bad Publishers, but small ones as well.
Amazon is also forcing publishers to sign a "most favored" status -- i.e. no one is allowed to get a better discount than Amazon. Many people regard this as anti-competitive behavior -- oh, wait, that's only when the publishers
are the ones pushing that requirement. Never mind.
Oh, and Amazon also hasn't paid any corporate tax in the UK for the past 3 years, despite selling £7.6 billion in goods. An investigation into this started back in April.
Yes, Amazon is not alone in exploiting the complexities of the EU tax structures. I'd also say they probably haven't violated any laws, or at least are trying to pay as little tax as possible without intentionally violating any laws.
But obviously Amazon's behavior has drawn the attention of the EU to this particular issue, and they are busted for dodging taxes and bullying their vendors. And you're only fooling yourself if you believe this has "nothing" to do with Amazon.