Facebook to pay millions more in UK tax

Facebook is expected to pay millions of pounds more in UK tax after approving fundamental changes to its corporate structure in Europe, reports The Guardian.

The social media giant will change its policy so that revenue generated from large advertisers displaying content on Facebook will be routed through the UK rather than Ireland, generating higher taxable revenues in Britain.

An internal Facebook document said: “On Monday, we will start notifying large UK customers that from the start of April, they will receive invoices from Facebook UK and not Facebook Ireland.

“What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales. In light of changes to tax law in the UK, we felt this change would provide transparency to Facebook’s operations in the UK.

“The new structure is easier to understand and clearly recognises the value our UK organisation adds to our sales through our highly skilled and growing UK sales team.”