Book Stores Pay More Tax Than Amazon

September 14, 2017 Taxation in UK

Taxes on bookshelfLONDON – Amazon is simultaneously outselling UK bookshops, while also paying only a fraction of the tax that they pay.

A new report released by the UK think-tank the Centre for Economics and Business Research has claimed that the UK division of Amazon pays a fraction of the taxes that local bookshops pay on their activities.

Based on the conclusion reached by the researchers of the report, UK bookshops pay an estimated GBP 12 million in corporate income tax, an amount which equates to approximately GBP 0.91 per GBP 100 of turnover.

However, Amazon paid out a total of GBP 15.8 million in 2015 on approximately GBP 1.5 billion in turnover.

The effective tax rate faced by the online giant comes to a much lower effective tax rate of only GBP 0.08 per GBP 100 of turnover.

It is estimated that brick-and-mortar bookshops in the UK are closing at a rate of 3 percent per year, and as many as 257 towns in the UK will see the closure of their last bookshop in the near-future.