EBay Avoids $1 Billion in Taxes with Luxembourg Move

Britain and Germany may have missed out on a combined $1 billion in sales tax since online marketplace eBay picked a tiny Luxembourg office as its base for EU sales, a shift that lawmakers say should now be investigated. EBay's nomination of Luxembourg unit eBay Europe Sarl -- with a staff of nine -- as its provider of services to EU clients allows it to charge customers in Europe a low rate of sales tax, often known as Value Added Tax, helping it to compete against rivals.