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They are talking about physical shops. Which are also competitors of Amazon. And where does your assessment comes from? Just guess?



>They are talking about physical shops. Which are also competitors of Amazon.

Isn't that exactly what VAT tax is for?

>And where does your assessment comes from? Just guess?

An educated guess that I am strongly confident in, to the point of willing to bet most of my savings on it. And I am not the kind of person who would usually bet any money on anything at all. My most risky money bet so far is putting a portion of my paycheck in 401k.


VAT is a tax on consumption, corporate taxes are on profits (revenues in this case). If Amazon does not have to pay as high corporate taxes due to transfer pricing, then it can offer a lower net (pre-VAT) price so their products end up being cheaper to consumers driving away sales from other retailers. While competition, you may say it is 'unfair' competition.

And yes, this makes it very hard for new businesses to enter the market as they do not have the resources necessary to do tax optimization.




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