Amazon UK pays $3.7m tax on $6.5bn sales

London - Amazon.com's main UK unit paid taxes of $3.7m on its 2012 income, despite group UK sales of $6.5bn, its accounts published on Wednesday showed.

The company received £2.5m in government grants during the year.

Amazon.co.uk reported the miniscule corporate income tax bill because all sales to British customers are routed through a Luxembourg affiliate, which pays the UK unit fees to cover its costs.

Amazon was not immediately available for comment but has previously said it follows the tax rules in every country where it operates.