Quote:
Originally Posted by nomadking
What Google "sell" is supplied from ABROAD.
Amazon distribute goods sold by OTHER companies. Those OTHER companies actually pay any corporation tax due. Amazon charges a fee, and tax will be due on that, but the large costs of setting up warehouses etc will eat into the amount of tax due. Just as it would for ANY other business. Amazon UK doesn't "own" any of the products in their UK warehouses. Any Amazon products are owned by an Amazon company based outside the UK.
With a supermarket, a company like Heinz will SELL to Tesco's, cans of baked beans. Heinz pay tax on that, Tesco's pay tax based on the profits of selling those baked beans. If a product Tesco's sells comes from outside the UK, then UK tax WON'T be due on the sale of it to Tesco's.
It's the same way it has ALWAYS been. It's just that the internet and cheapness of transportation makes it easier to operate from abroad, and so the use has increased.
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You are under a misapprehension - the services Google sell in the UK are sold and supplied by staff (they currently employ 3,500 in London, going up to 7,000 by next year) at their huge offices in London, but they put the sales through their Dublin Office or Luxembourg Office (depending on what it is).
I know this because I worked with Google for 5 years as one of members of their Education CIO Group.