EBay’s double tax base prompts calls for investigation

“Britain and Germany may have missed out on a combined $1 billion in sales tax since online marketplace eBay picked a tiny Luxembourg office s its base for EU sales, a shift that lawmakers say should now be investigated.  EBay, which is headquartered in San Jose, California, moved into Europe in 1999 when it established eBay International in Berne. Switzerland’s low income tax regime for foreign companies was highly beneficial for the auction site. The Swiss base also meant, initially, that the company didn’t have to charge EU customers VAT. But in 2003, Brussels changed the rules.”

http://www.reuters.com/article/2012/11/30/net-us-ebay-tax-europe-idUSBRE8AT0S720121130

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