Etailer Amazon is set to pay more tax in European countries, including the UK.
Previously, the company has been criticised for the little amount it pays in tax, as it bases various parts of its business in different countries.
The online firm will start to pay tax on items it sells within the UK, as well as other European countries, after pressures mounted from Europe.
Amazon previously carried out these payments through Luxembourg, to allow the firm to pay a lower amount in tax.
According to V3, in a statement Amazon said: “We regularly review our business structure to ensure that we are able to best serve our customers and provide additional product and services. More than two years ago we began the process of establishing local country branches of Amazon EU Sarl, our primary retail operating company in Europe.
“The local country branch for the UK became official on May 1st and Amazon EU Sarl is now recording retail sales made to customers in the UK through the UK branch. Previously, these sales were recorded in Luxembourg."
This news comes after the Government announced plans to implement the so-called ‘Google Tax’ scheme last year, which would focus on tax avoidance by multinational companies.
Actor Russell Brand recently criticised large companies including Google and Apple for tax avoidance, where he accused the firms of having cash offshore to avoid paying higher taxes.