All parties in this scenario are legally compliant.
> VAT is a sales tax, effectively, but even that is managed away fairly easy. It's an efficient tax, but when it comes to B2B activity it's effectively unpaid. Amazon, though is a retailer, has a very large amount of B2B business.
How does its B2B business help Amazon evade taxes? When I think about AWS, the billing doesn’t seem to lend itself to any obvious sales tax evasion schemes...
They were complaint with the letter of the law, but the law makers decided that the companies were not complaint with the original spirit of the law. So they introduced a new law so that all parties can also be complaint with the spirit.
In software engineering terms, the written down code was not producing intended behavior. So new code has been written to deal with this bug.
Having the option to not comply with laws, is an unfair advantage.
>reduce or remove corporate tax and raise sales tax or similar
VAT is a sales tax, effectively, but even that is managed away fairly easy. It's an efficient tax, but when it comes to B2B activity it's effectively unpaid. Amazon, though is a retailer, has a very large amount of B2B business.