After heavy criticism that it was avoiding tax, the BBC can reveal that profits from the majority of Facebook's advertising revenue initiated in Britain will now be taxed in the UK.
It will no longer route sales through Ireland for its largest advertisers.
That includes major businesses such as Tesco, Sainsbury's, consumer goods firm Unilever and advertising giant WPP.
Smaller business sales where advertising is booked online - with little or no Facebook staff intervention - will still be routed through Ireland, which will remain the company's international headquarters.
I am told the change will mean that Facebook
will account for substantially more revenue in the UK and will
therefore pay a higher level of corporation tax on the profits it makes
here.
Corporation tax is levied at 20% on the profits a business makes.
