Snapchat sets up international headquarters in London

Snap, the company behind messaging app Snapchat, says it has established its non-US headquarters in London.

It will pay taxes on UK and some international sales through the hub. The move is unusual for a US technology company, many of which set up international headquarters in Ireland or other European countries due to tax breaks.

However, the European Commission has been cracking down on some of the tech companies' tax deals. In addition, the OECD has has been pushing for G20 measures on corporate tax avoidance.

Claire Valoti, general manager of Snap Group in the UK, said: "We believe in the UK creative industries. The UK is where our advertising clients are, where more than 10 million daily Snapchatters are, and where we've already begun to hire talent."

The messaging app parent company already had a UK office in London, but as of Tuesday, the office will operate as its international headquarters.

Revenue from sales made to UK customers will be booked in the UK. Sales staff in the UK will also handle clients in countries outside the US which do not have a Snap sales force, and those revenues will also be recorded in the UK.