The company added that the move had been planned for some time and comes in response to changes in UK tax law. Where Facebook UK deals with advertisers directly “adding value” to the transaction, advising companies and planning ads, it will invoice through the UK. Smaller businesses that use the social network’s online ad buying tools will still be invoiced through Facebook Ireland, which will remain the company’s international headquarters handling all business outside of North America.
The UK represents less than 10 percent of Facebook’s global revenue, but the company reiterated that its operations in the country, which include more than 850 staff, are an important part of the business. The company is currently building a new headquarters in London. Like other internet companies, Facebook has faced criticisim for paying little tax in some countries and running its business through more fiscal-friendly countries like Ireland. In 2014, it paid just GBP 4,327 in corporation tax in the UK after reporting an accounting loss of GBP 28.5 million due in large part to share bonuses for staff.
