Money issue: Amazon argued that the IRS overestimated the value of "intangible" assets, such as software and trademarks, it had transferred to a Luxembourg unit, Amazon Europe Holding Technologies SCS.
LONDON: Britain is losing up to £1bil (RM5.64bil) a year in value added tax (VAT) because of fraud or error by sellers using online marketplaces eBay and Amazon, a report by the government auditor said.
The National Audit Office (NAO) said on April 19 that the sellers involved are often based in China and that consumer regulator Trading Standards had found that US companies Amazon and eBay had failed to remove sellers that were flouting VAT rules, even after being informed of the sellers' non-compliance.
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