Insight: EBay’s double tax base prompts calls for investigation

Visitors chat next to Ebay logo at CeBIT computer fair in HanoverLONDON (Reuters) – Britain and Germany may have missed out on a combined $ 1 billion in sales tax since online marketplace eBay picked a tiny Luxembourg office as its base for EU sales, a shift that lawmakers say should now be investigated. EBay's nomination of Luxembourg unit eBay Europe Sarl – with a staff of nine – as its provider of services to EU clients allows it to charge customers in Europe a low rate of sales tax, often known as Value Added Tax, helping it to compete against rivals. However, the unit doesn't actually receive the money from sales. …

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