Report: Amazon paid £10m tax on £4.3bn sales last year

According to a report from Sky News, the online behemoth, which operates through tax haven Luxembourg, claimed it had paid 'all applicable taxes'

A report has claimed online retail giant Amazon paid just £10m in UK corporation tax in the past year, despite sales hitting £4.3bn.

According to Sky News the firm, which reports the majority of its European profit through a tax-exempt Luxembourg partnership, saw a 56 per cent rise in profit from UK sales to £17m in 2013, as well as a 13 per cent rise in turnover.

But in its defence, Amazon said it paid all the right taxes.

In a statement sent to Sky, the firm said: "Amazon pays all applicable taxes in every jurisdiction that it operates within.

"Amazon EU serves tens of millions of customers and sellers throughout Europe from multiple consumer websites in a number of languages dispatching products to all 28 countries in the EU.

"We have a single European headquarters in Luxembourg with hundreds of employees to manage this complex operation."