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
Previous Tax and Total Contribution Reports (6)
- Taxation and our total economic contribution to public finances 2016-17
- Taxation and our total economic contribution to public finances 2015-16
- Taxation and our total economic contribution to public finances 2014-15
- Taxation and our total economic contribution to public finances 2013-14
- Taxation and our total economic contribution to public finances 2012-13
- Taxation and our total economic contribution to public finances 2011-12
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
Americas
Argentina
Vodafone Business sales and marketing locations and other entities
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | - |
Brazil
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | - |
Canada
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | 5 |
Cayman Islands
Non-operating company
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
Chile
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | - |
Mexico
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | 3 |
USA
Vodafone Business sales and marketing locations and other entities
| Direct tax | (€4m) |
| Direct non tax | €1m |
| Indirect tax | €18m |
| Capital investment | €8m |
| Employees | 284 |
Europe
Albania
Operating company
| Direct tax | €2m |
| Direct non tax | €2m |
| Indirect tax | €12m |
| Capital investment | €17m |
| Employees | 401 |
Austria
Vodafone Business sales and marketing locations and other entities
| Direct tax | (€1m) |
| Direct non tax | €1m |
| Indirect tax | - |
| Capital investment | €1m |
| Employees | - |
Belgium
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | €1m |
| Employees | 20 |
Bulgaria
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
Czech Republic
Operating company
| Direct tax | €24m |
| Direct non tax | €26m |
| Indirect tax | €82m |
| Capital investment | €71m |
| Employees | 1,734 |
Denmark
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | - |
Finland
Vodafone Business sales and marketing locations and other entities
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
France
Vodafone Business sales and marketing locations and other entities
| Direct tax | €2m |
| Direct non tax | (€1m) |
| Indirect tax | €1m |
| Capital investment | €5m |
| Employees | 43 |
Germany
Operating company
| Direct tax | €331m |
| Direct non tax | €1m |
| Indirect tax | €1,292m |
| Capital investment | €1,916m |
| Employees | 14,946 |
Greece
Operating company
| Direct tax | €22m |
| Direct non tax | €66m |
| Indirect tax | €197m |
| Capital investment | €116m |
| Employees | 1,913 |
Guernsey
Non-operating company
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
Hungary
Operating company
| Direct tax | €29m |
| Direct non tax | €25m |
| Indirect tax | €140m |
| Capital investment | €60m |
| Employees | 3,762 |
Ireland
Operating company
| Direct tax | €25m |
| Direct non tax | €20m |
| Indirect tax | €113m |
| Capital investment | €150m |
| Employees | 1,313 |
Italy
Operating company
| Direct tax | €345m |
| Direct non tax | €668m |
| Indirect tax | €856m |
| Capital investment | €890m |
| Employees | 7,332 |
Jersey
Non-operating company
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
Luxembourg
Non-operating company
| Direct tax | €9m |
| Direct non tax | €1m |
| Indirect tax | €50m |
| Capital investment | €55m |
| Employees | 351 |
Malta
Operating company
| Direct tax | €11m |
| Direct non tax | €3m |
| Indirect tax | €4m |
| Capital investment | €12m |
| Employees | 338 |
Netherlands
Operating company
| Direct tax | €32m |
| Direct non tax | €1m |
| Indirect tax | €310m |
| Capital investment | €409m |
| Employees | 4,361 |
Norway
Vodafone Business sales and marketing locations and other entities
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
Portugal
Operating company
| Direct tax | €20m |
| Direct non tax | €27m |
| Indirect tax | €124m |
| Capital investment | €195m |
| Employees | 1,386 |
Romania
Operating company
| Direct tax | €28m |
| Direct non tax | €24m |
| Indirect tax | €111m |
| Capital investment | €98m |
| Employees | 4,220 |
Russia
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | €1m |
| Employees | 4 |
Spain
Operating company
| Direct tax | €196m |
| Direct non tax | €75m |
| Indirect tax | €413m |
| Capital investment | €862m |
| Employees | 5,078 |
Sweden
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | (€1m) |
| Capital investment | €1m |
| Employees | 2 |
Switzerland
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | €1m |
| Employees | 1 |
Ukraine
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | €1m |
| Employees | - |
UK
Operating company
| Direct tax | €243m |
| Direct non tax | €54m |
| Indirect tax | €833m |
| Capital investment | €1,348m |
| Employees | 17,120 |
Africa and Middle East
Angola
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | €1m |
| Employees | 9 |
Bahrain
Vodafone Business sales and marketing locations and other entities
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
Cameroon
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | €1m |
| Employees | 32 |
Côte d’Ivoire
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | 10 |
DRC
Operating company
| Direct tax | €18m |
| Direct non tax | €27m |
| Indirect tax | €77m |
| Capital investment | €45m |
| Employees | 599 |
Egypt
Operating company
| Direct tax | €81m |
| Direct non tax | €59m |
| Indirect tax | €186m |
| Capital investment | €188m |
| Employees | 8,545 |
Ghana
Operating company
| Direct tax | €19m |
| Direct non tax | €9m |
| Indirect tax | €55m |
| Capital investment | €33m |
| Employees | 1,052 |
Kenya
Operating company
| Direct tax | €308m |
| Direct non tax | €19m |
| Indirect tax | €99m |
| Capital investment | €121m |
| Employees | 1,761 |
Lesotho
Operating company
| Direct tax | €8m |
| Direct non tax | €4m |
| Indirect tax | €8m |
| Capital investment | €10m |
| Employees | 206 |
Mauritius
Non-operating company
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | 5 |
Morocco
Non-operating company
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
Mozambique
Operating company
| Direct tax | €15m |
| Direct non tax | €6m |
| Indirect tax | €26m |
| Capital investment | €58m |
| Employees | 512 |
Nigeria
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €4m |
| Capital investment | €2m |
| Employees | 206 |
Seychelles
Non-operating company
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
Sierra Leone
Vodafone Business sales and marketing locations and other entities
| Direct tax | - |
| Direct non tax | - |
| Indirect tax | - |
| Capital investment | - |
| Employees | - |
South Africa
Operating company
| Direct tax | €412m |
| Direct non tax | €17m |
| Indirect tax | €353m |
| Capital investment | €585m |
| Employees | 5,168 |
Tanzania
Operating company
| Direct tax | €26m |
| Direct non tax | €9m |
| Indirect tax | €122m |
| Capital investment | €61m |
| Employees | 530 |
Turkey
Operating company
| Direct tax | €398m |
| Direct non tax | €188m |
| Indirect tax | €482m |
| Capital investment | €309m |
| Employees | 3,311 |
Zambia
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €3m |
| Capital investment | €1m |
| Employees | 174 |
Asia-Pacific
Australia
Operating company
| Direct tax | €15m |
| Direct non tax | €224m |
| Indirect tax | €62m |
| Capital investment | €279m |
| Employees | 1,402 |
China
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | 21 |
Hong Kong
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | 83 |
India
Operating company
| Direct tax | €487m |
| Direct non tax | €839m |
| Indirect tax | €1,614m |
| Capital investment | €1,088m |
| Employees | 22,724 |
Japan
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | - |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | 21 |
Malaysia
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | - |
New Zealand
Operating company
| Direct tax | €32m |
| Direct non tax | €1m |
| Indirect tax | €111m |
| Capital investment | €134m |
| Employees | 2,967 |
Singapore
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | €5m |
| Employees | 191 |
South Korea
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | 14 |
Taiwan
Vodafone Business sales and marketing locations and other entities
| Direct tax | €1m |
| Direct non tax | €1m |
| Indirect tax | €1m |
| Capital investment | - |
| Employees | - |
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.
Learn more about Vodafone's tax principles and strategy
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.
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.