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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

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.

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-
Employees5

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-
Employees3

USA

Vodafone Business sales and marketing locations and other entities

Direct tax(€4m)
Direct non tax€1m
Indirect tax€18m
Capital investment€8m
Employees284

Albania

Operating company

Direct tax€2m
Direct non tax€2m
Indirect tax€12m
Capital investment€17m
Employees401

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
Employees20

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
Employees1,734

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
Employees43

Germany

Operating company

Direct tax€331m
Direct non tax€1m
Indirect tax€1,292m
Capital investment€1,916m
Employees14,946

Greece

Operating company

Direct tax€22m
Direct non tax€66m
Indirect tax€197m
Capital investment€116m
Employees1,913

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
Employees3,762

Ireland

Operating company

Direct tax€25m
Direct non tax€20m
Indirect tax€113m
Capital investment€150m
Employees1,313

Italy

Operating company

Direct tax€345m
Direct non tax€668m
Indirect tax€856m
Capital investment€890m
Employees7,332

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
Employees351

Malta

Operating company

Direct tax€11m
Direct non tax€3m
Indirect tax€4m
Capital investment€12m
Employees338

Netherlands

Operating company

Direct tax€32m
Direct non tax€1m
Indirect tax€310m
Capital investment€409m
Employees4,361

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
Employees1,386

Romania

Operating company

Direct tax€28m
Direct non tax€24m
Indirect tax€111m
Capital investment€98m
Employees4,220

Russia

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax€1m
Indirect tax€1m
Capital investment€1m
Employees4

Spain

Operating company

Direct tax€196m
Direct non tax€75m
Indirect tax€413m
Capital investment€862m
Employees5,078

Sweden

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax-
Indirect tax(€1m)
Capital investment€1m
Employees2

Switzerland

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax€1m
Indirect tax€1m
Capital investment€1m
Employees1

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
Employees17,120

Angola

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax-
Indirect tax€1m
Capital investment€1m
Employees9

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
Employees32

Côte d’Ivoire

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax€1m
Indirect tax€1m
Capital investment-
Employees10

DRC

Operating company

Direct tax€18m
Direct non tax€27m
Indirect tax€77m
Capital investment€45m
Employees599

Egypt

Operating company

Direct tax€81m
Direct non tax€59m
Indirect tax€186m
Capital investment€188m
Employees8,545

Ghana

Operating company

Direct tax€19m
Direct non tax€9m
Indirect tax€55m
Capital investment€33m
Employees1,052

Kenya

Operating company

Direct tax€308m
Direct non tax€19m
Indirect tax€99m
Capital investment€121m
Employees1,761

Lesotho

Operating company

Direct tax€8m
Direct non tax€4m
Indirect tax€8m
Capital investment€10m
Employees206

Mauritius

Non-operating company

Direct tax€1m
Direct non tax-
Indirect tax€1m
Capital investment-
Employees5

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
Employees512

Nigeria

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax€1m
Indirect tax€4m
Capital investment€2m
Employees206

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
Employees5,168

Tanzania

Operating company

Direct tax€26m
Direct non tax€9m
Indirect tax€122m
Capital investment€61m
Employees530

Turkey

Operating company

Direct tax€398m
Direct non tax€188m
Indirect tax€482m
Capital investment€309m
Employees3,311

Zambia

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax€1m
Indirect tax€3m
Capital investment€1m
Employees174

Australia

Operating company

Direct tax€15m
Direct non tax€224m
Indirect tax€62m
Capital investment€279m
Employees1,402

China

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax-
Indirect tax€1m
Capital investment-
Employees21

Hong Kong

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax€1m
Indirect tax€1m
Capital investment-
Employees83

India

Operating company

Direct tax€487m
Direct non tax€839m
Indirect tax€1,614m
Capital investment€1,088m
Employees22,724

Japan

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax-
Indirect tax€1m
Capital investment-
Employees21

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
Employees2,967

Singapore

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax€1m
Indirect tax€1m
Capital investment€5m
Employees191

South Korea

Vodafone Business sales and marketing locations and other entities

Direct tax€1m
Direct non tax€1m
Indirect tax€1m
Capital investment-
Employees14

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.