Amazon continues to grow in Spain. The e-commerce giant, which celebrated its tenth anniversary in the country last year, reached total revenues in 2021 that exceeded 6,000 million euros, 11.1% more than in 2020, when the company closed with an amount of 5,400 million, which was slightly more than half that of its rival, El Corte Inglés, which reduced its income that year by 31% to 10,432 million. The Spanish distribution group has not yet offered its closing data for 2021, but it closed the first half with a turnover of 5,500 million, 25% more.
Amazon’s income includes the billing of the company’s subsidiaries that operate independently in Spain and whose accounts appear each year in the Mercantile Registry, such as that of the branches of Amazon EU Sarl (in charge of retail sales through Amazon .es) and Amazon Web Services (business of the cloud), which report their income and profits to the Spanish authorities and pay the corresponding taxes in the country, but present combined accounts through their parent company in Luxembourg.
Amazon does not reveal the profit obtained in Spain, but points out that operating profits remain relatively low due to price pressure in a very competitive market, intense capital investment and rising operating costs (including those resulting from increased labor force and inflation).
The company, which has published today a report on its economic impact in Spain, explains that its investments in the country amounted to 3,700 million euros last year, 48% more than in 2020, due to the opening of new centers and new hires. “We reinvest more than half of the income we generate,” they stress.
Amazon also reveals that its total tax contribution, adding direct and indirect taxes, was more than 292 million euros, compared to more than 261 million in 2020. Of these, more than 224 million correspond to direct taxes, most of them related to payroll taxes and social security, although corporate income tax, taxes paid for the acquisition or construction of land, the tax on digital services (the so-called Google Tax), which is the first year that it is applied, and import duties. The company does not disclose how much it has paid for the aforementioned fee, which also affects its advertising business.
The company details that they collected 68 million more in indirect taxes as a result of their activity in Spain. In this case, these are taxes that they collect and remit from their customers, employees and other third parties due to their business activities in Spain. These include VAT and taxes paid by your employees withheld by Amazon.
Amazon clarifies that it also helps third parties that sell with them in the payment of VAT in Spain, and points out that to date they have not included these figures in their indirect taxes, since these have been paid by third parties to the Spanish Tax Agency.
Mariangela Marseglia, general director of Amazon.es, highlights Amazon’s strong commitment to Spain and defends that they have become “a relevant engine for the Spanish economy”. “Since we launched Amazon.es in 2011, we have invested more than 10,500 million in the country and we currently employ 18,000 people and work with thousands of Spanish SMEs, which is why we have committed to reaching 25,000 permanent employees and training 50,000 SMEs and entrepreneurs to sell online in Spain before the end of 2025”.
The company boasts that in 2021 they had more than 12,000 Spanish SMEs selling on Amazon. About half exported their products, reaching more than 650 million in international sales. They sold more than 60 million products in Amazon stores, 70% more than the previous year. According to Amazon, almost 60% of the items sold on its platform come from third parties.
Likewise, it highlights that has become one of the 15 companies with the largest number of employees in the country after having hired 11,000 new permanent workers in the last two years, which means an average of more than 100 permanent jobs per week. In 2021, they hired more than 350 professionals for highly qualified positions: software development, information technology and engineering, among others. Amazon currently has 18,000 permanent employees in Spain. The average age of its workforce in the country is 34 years.
Related to employment, it also points out that SMEs that sell on Amazon have created more than 30,000 jobs.
Another number that the company highlights is that of the 40 facilities they have in Spain, between operations and corporate offices. The company says it is rapidly growing its software development centers in Madrid and Barcelona, where some 600 software developers, computer engineers and data scientists work on apps for Amazon Business, Kindle and books, retail and artificial intelligence.
In early 2022, Amazon announced the arrival of Lab126 at the Madrid technology center, where they plan to hire 100 people to work on the company’s next generation of devices.
In its report, the American multinational, subjected to greater scrutiny by regulators in Europe and the United States due to its enormous market power and monopoly accusations, recalls that Amazon Web Services (AWS) will open a new region in a few months cloud in Spain, located in Aragón, with an investment of 2,500 million and a planned hiring of 1,300 professionals over the next 10 years. And he points out that Amazon has become the largest corporate buyer of renewable energy in Spain, with 14 renewable projects in the country, which will have a combined capacity of more than 1.4 GW. The company has committed to a net-zero carbon footprint across its global business by 2040.