US tech giants Netflix and eBay paid just £1.9m in tax between them in the UK last year, reigniting concerns about how the tech companies are able to reduce their domestic tax bill.
Despite both boasting millions of UK customers, eBay paid just £1.6m in tax on £7.6m in profits in 2016, according to accounts filed to Companies House. Meanwhile, video streaming giant Netflix almost halved its UK tax bill to below €300,000 on around €1m in profits.
The total income from eBay’s UK customers is also believed to be significantly more than its £200m in revenues reported to UK authorities.
eBay UK’s business describes its revenues as coming from marketing and advertising services to a Swiss parent company. But the online auction site previously told US authorities it registered $1.3bn of revenues in the UK, according to the Financial Times.