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Amazon accounts show UK tax bill reduced to $3.7m on $6.5 billion sales by routing revenue through Luxembourg

Amazon chief executive Jeff Bezos
Amazon chief executive Jeff Bezos

Amazon.com's main UK unit paid taxes of $3.7 million on its 2012 income.

Its UK sales were $6.5 billion (€5 billion) according to accounts published by the company.

Amazon received £2.5m (€3m) in grants from the British government during the year.

Amazon.co.uk Limited reported the miniscule corporate income tax bill because all sales to British customers are routed through a Luxembourg affiliate, which pays the UK unit fees to cover its costs.

Amazon has previously said it follows the tax rules in every country where it operates.