Already 99,149 people have signed up to the notion that these arrangements are unfair. Higson, author of the Young Bond series of novels, is one of them. \”My position is that Amazon is convenient and cheap, but at the expense of traditional bookshops that have to pay the full tax rate. How can anyone else possibly hope to compete?\” he said. \”There has to be a level playing field. I would be bereft if we lost all our bookshops and all book sales were in the hands of one single retailer that sells books for next to nothing. For a company to barge in, hoover up all sales of everything online and not pay UK tax appears to be bordering on the criminal. And for the government to have let them set up in this way is also bordering on the criminal, it\’s certainly very stupid, but then what do I know about EU tax laws?\”
For it\’s all a combination of two things. Firstly, EU law: it\’s a single market and you get to sell to anywhere in it from anywhere in it.
Secondly, it\’s the way all international taxation works. Use of warehouses and logistics chains does not lead to the creation of a permanent establishment that means liability to corporation tax.
And that\’s it. There isn\’t even any tax dodging, let along avoidance, going on. It\’s not just that this is legal, it\’s that this is the way the system is supposed to work.