The social media giant Facebook will pay millions more to the U.K. government after an overhaul of its current tax system.
The U.S. company has come under heavy criticism after reports last year, citing documents filed to the U.K. registrar of companies, showed it paid a total of £4,327 ($6,584) in corporation tax in the U.K. in 2014.
However, on Monday it will start notifying large U.K. customers that they will receive invoices from Facebook U.K. and not Facebook Ireland. Thus, Facebook will no longer funnel larger advertising sales through its Irish subsidiary which had allowed it to avoid higher taxes in the U.K.
"U.K. sales made directly by our U.K. team will be booked in the U.K., not Ireland. Facebook U.K. will then record the revenue from these sales," Facebook confirmed in a statement to CNBC.