NEW YORK (TheStreet) -- Amazon.com (AMZN) has begun booking revenue from its retail sales in individual European countries, rather than funnel all sales through Luxembourg, a low tax country, as scrutiny of corporate tax practices intensifies in Europe, The Wall Street Journal reports.
The change took effect on May 1 and so far Amazon's branches have been booking revenue in the U.K, Italy, Germany, and Spain.
The online marketplace's change could result in a significant increase in its European tax bill, The Journal said, adding that it could also put pressure on other companies to make the same alterations to their European tax practices.
The EU is investigating a number of tax saving structures by multinational corporations and is even investigating tax deals between companies and individual EU countries, The Journal said, noting that Apple (AAPL) and Starbucks (SBUX) are also facing probes.
Additionally, Amazon.com may be giving Etsy (ETSY), an online marketplace for handmade items, some new competition. Several reports suggest Amazon.com is testing the waters by reaching out to sellers on Etsy.
The company is directing them to an online form which thanks them for their interest in "Handmade at Amazon." The seller is asked to fill out the form and give information about their business and what they sell.
Amazon offers to give sellers "exclusive updates" while they "set up shop."
Shares of Amazon.com are lower by 0.33% to $426.20 in pre-market trading on Tuesday morning.