Ebay has defended its £1.6 million tax payment after stating it fell in line with tax rules despite posting UK revenues of close to £1 billion.
In the year to December 31, Ebay UK’s net revenue of £980 million boosted group sales to £6.7 billion, according to an annual report from its US parent company.
However, another report filed at Companies House stated the ecommerce giant made just £200.4 million in the UK last year, paying just £1.6 million in tax on £7.6 million pre-tax profits.
Despite the discrepancy between the reports, an Ebay spokesperson stated: “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.”
The news comes just a week after it was revealed that rival ecommerce giant Amazon would be handed a multi-million euro fine, following a three-year investigation into its tax operations in the EU.
Earlier this year Amazon made headlines after it was found to have paid 50 per cent less UK corporation tax last year, despite a 54 per cent jump in turnover.