Tax and our total economic
contribution to public finances
As a major investor, taxpayer and employer, Vodafone makes significant contributions to the economies of all the countries in which we operate. In 2018, we contributed, directly and indirectly, €13.3 billion in cash to governments around the world.
We recognise and value the benefits for society that arise from fair, effective and predictable tax regimes. We are committed to acting with integrity, honesty and transparency in all matters related to tax and ensure we adhere to the highest standards of corporate governance.
Our 2018 report
Our report sets out our total contribution to public finances on a cash-paid basis worldwide for the financial year 1 April 2017 to 31 March 2018 and contains new information, including:
- Our position on the challenges of the global digital economy for tax purposes
- Our OECD base erosion and profit shifting Country by Country Report
- Our position on the amount of corporate taxes we pay, split out as a subset of the total direct taxes we pay, by country
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Taxation and our total economic contribution to public finances 2016-17
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Taxation and our total economic contribution to public finances 2015-16
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Taxation and our total economic contribution to public finances 2014-15
Size: 5 MB Download -
Taxation and our total economic contribution to public finances 2013-14
Size: 382 KB Download -
Taxation and our total economic contribution to public finances 2012-13
Size: 246 KB Download -
Taxation and our total economic contribution to public finances 2011-12
Size: 142 KB Download
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In 2018, our contribution to public finances in every country in which we have a legal entity consisted of:
Our business
In 2018, our turnover was €46.6 billion, on which we made a profit before tax of €3.9 billion. We have:
536 million
mobile customers
20 million
fixed broadband customers
35 million
mobile money customers
104,000
employees worldwide
€9.2 billion
invested in our network and services
Vodafone’s contributions, by country
We are a multinational company with operations in 25 countries, and Vodafone Business entities or other activities in 38 more.
We believe it is possible to achieve a balance between a company’s responsibilities to society and its obligations to shareholders
Tax systems are complex and confusing and can lead to an erosion of public trust. We believe that increasing transparency and improving the understanding of tax systems is vital to help address this issue.
We produce this report in order to explain what taxes and other fees we pay in each country; the principles by which we operate; our views on various matters of significance to the payment of taxes by corporations.
This includes clarifying areas that are often a source of public confusion including:
Corporation tax is only one aspect of taxes paid by a company
We pay more than 85 different corporate taxes a year; corporation tax is just one of them.
Most corporate taxes are paid on profits not revenue
This helps to avoid disproportionate tax demands when profits are low, which can severely damage businesses.
Taxation is local
Taxes generally fall where profits are generated and are determined by the local laws in place in that location. Last year, globally, we paid a total of €3.1 billion in direct taxes.
Taxation is just one way that governments raise revenue from businesses
Taxation is not the only route used by governments to raise revenue from businesses; licensing agreements, production-sharing agreements and spectrum fees and auction proceeds are just some of the other mechanisms used. In 2018, we paid €2.4 billion of non-tax-based fees to governments.
Tax incentives can be used to stimulate employment and investment
These incentives are not loopholes but part of government strategies to stimulate and attract inward investment. In 2018, we invested more than €9.2 billion in the networks and services relied on by our customers around the world.
Vodafone's tax principles and strategy
Vodafone operates within a clearly defined governance framework on tax that is designed to provide certainty for all stakeholders with an interest in our tax affairs.
The B Team Responsible Tax Principles
Vodafone endorses The B Team Responsible Tax Principles and is committed to reflecting these Principles across our business.
Why does Vodafone pay little or no UK corporation tax?
Vodafone makes large investments in the UK and in the 2018 financial year spent over €1.3 billion building and upgrading the networks and services relied on by millions of people.
Since 2000, Vodafone has paid the UK government more than €10 billion for our 3G and 4G radio spectrum licences, resulting in more than €500 million a year in interest payments to UK banks. Our total contribution to the UK government was €1.1 billion. The UK government allows companies to claim tax (and other) reliefs on capital investments they make in the UK, in order to stimulate investment, encourage skills creation and bring greater employment opportunities to millions of people.
Learn more about Vodafone and UK corporation tax
Corporate responsibilities
and obligations
We are committed to acting with integrity, honesty and transparency in the creation and execution of our tax strategy, policies and practices.
Vodafone, Luxembourg and ‘tax havens’
Many governments choose to develop tax regimes that offer multinational companies some form of competitive advantage in order to attract inward investment.
Multinationals, governments
and tax
Many governments purposefully shape their taxation policies in order to compete with other countries to attract international businesses and capital, and stimulate economic activity, job creation and skills development.
Tax and emerging markets
Vodafone’s businesses in Africa are a very significant source of government revenue, infrastructure investment, employment and skills development and are widely recognised as a positive force for good by governments and civil society alike.
Political and tax policy advocacy
When governments look to develop or change tax policy, they invariably seek input from a wide range of interested stakeholders, including business advocacy groups and a large number of individual companies.
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Read more »
Corporate responsibilities
and obligationsWe are committed to acting with integrity, honesty and transparency in the creation and execution of our tax strategy, policies and practices.
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Read more »
Vodafone, Luxembourg and ‘tax havens’
Many governments choose to develop tax regimes that offer multinational companies some form of competitive advantage in order to attract inward investment.
-
Read more »
Multinationals, governments
and taxMany governments purposefully shape their taxation policies in order to compete with other countries to attract international businesses and capital, and stimulate economic activity, job creation and skills development.
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Read more »
Tax and emerging markets
Vodafone’s businesses in Africa are a very significant source of government revenue, infrastructure investment, employment and skills development and are widely recognised as a positive force for good by governments and civil society alike.
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Read more »
Political and tax policy advocacy
When governments look to develop or change tax policy, they invariably seek input from a wide range of interested stakeholders, including business advocacy groups and a large number of individual companies.
More about Vodafone
Operating responsibly
Learn about how we are contributing to the societies in which we operate.
Reporting centre
Find all our report downloads and links to our transparency disclosures.