Facebook to pay more taxes in Britain

March 4, 2016
Facebook's announcement that it would declare advertising revenue from its top British clients in Britain instead of Ireland com
Facebook's announcement that it would declare advertising revenue from its top British clients in Britain instead of Ireland comes amid public outrage in many parts of Europe over US tech giants' tax arrangements

Facebook on Friday said it would declare advertising revenue from its top British clients in Britain instead of Ireland, where it has its European headquarters, meaning it will have to pay more tax.

"On Monday we will start notifying large UK customers that from the start of April they will receive invoices from Facebook UK and not Facebook Ireland," the social networking giant said in a statement.

"What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales," it added.

The result is that Facebook will end up paying more tax in Britain although the precise amounts will not be known until 2017. The company did not make clear what proportion of revenues from smaller companies would continue to be routed through Ireland.

The announcement comes amid public outrage in many parts of Europe over the tax arrangements of US tech multinationals including Amazon, Facebook and Google.

There was an outcry in January in Britain over Google's back tax payments and Facebook has also been in the firing line over the £4,327 (5,572 euros, $6,119) in corporate it paid in 2014.

The BBC said that Facebook's major British clients include the supermarket chains Tesco and Sainsbury's, as well as food giant Unilever and advertising group WPP.

The in Ireland is just 12.5 percent—one of the lowest in the European Union.

In Britain the rate is 20 percent.

Explore further: Google to pay £130 mln to Britain in back taxes: report

Related Stories

British MPs criticise 'small' Google tax deal

February 24, 2016

A tax deal last month between Britain and US Internet giant Google that forced Prime Minister David Cameron on the defensive was "disproportionately small", a group of British MPs said on Wednesday.

Head of Google in Europe grilled by UK lawmakers

February 11, 2016

A British parliamentary committee has grilled Google's president of European operations, questioning in blunt terms whether the Internet giant had paid its fair share of taxes.

Italian tax police raid Facebook offices

December 7, 2012

Italian police on Friday raided the Milan offices of US social media giant Facebook over possible violations of tax laws, Italian media reported.

Recommended for you

Dutch open 'world's first 3D-printed bridge'

October 17, 2017

Dutch officials toasted on Tuesday the opening of what is being called the world's first 3D-printed concrete bridge, which is primarily meant to be used by cyclists.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.