How Amazon and eBay became a tax haven for Chinese sellers

For years, Amazon customers in Europe have enjoyed the shopping giant's ability to deliver everything from best-selling books to phone chargers within days, if not hours, at prices that brick-and-mortar retailers often cannot match. Much like in the United States, online sales are eating up physical retail market shares. By 2023, it's predicted that 21 percent of all non-grocery retail sales in Europe's biggest economies will be online, up from just 13 percent last year. But, increasingly, the large digital platforms, which also operate as marketplaces for third-party sellers, have come under fire for helping foreign retailers skirt taxes.

In the EU, practically all marketplace sellers are required to report and pay a sales tax called...

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