Like Google, Apple and other hi-tech multinationals, eBay routes income from customers in many of its largest markets, including the UK, through a European sales hub located in a tax-friendly country. The income can then flow into further controversial tax structures that ultimately wipe huge sums off the group’s tax bills.
UK losing millions in VAT from non-EU sellers on Amazon and eBay
Last year, the then British chancellor George Osborne introduced a new punitive tax, known as the diverted profits tax, designed to target tech businesses artificially shifting UK revenues abroad. He said such practice had “abused the trust of the British people”.