Online platform eBay has found itself facing scrutiny over its tax policies, after its UK business paid £1.6m in tax last year, even though its US parent reported total revenues from its UK operations of $1.32bn (£1bn)
Ebay’s filing to Companies House shows revenues for 2016 totalled £200m, while pre-tax profits dipped to £7.6m and the tech company paid £1.6m in UK tax in total.
However, eBay’s US annual report for 2016 states UK revenues last year were $1.3bn. Commentators have suggested that the US revenue figure appears to include commissions eBay receives on sales in the UK, but those figures are not included in the UK accounts. Instead the UK subsidiary describes its revenue as coming from providing marketing and advertising services to eBay’s Swiss entity, eBay International AG.
In a statement eBay said: ‘In all countries and at all times, eBay is fully compliant with national, EU and international tax rules including those of the OECD, including the remittance of VAT to the appropriate authorities.’
Ebay’s 2016 annual report is here.
