Italian authorities are investigating Amazon and three of its executives over allegations of tax evasion amounting to 1.2 billion euros ($1.26 billion).
The probe focuses on Amazon’s European operations, specifically its Luxembourg-based unit, and its activities in Italy between 2019 and 2021.
Sources familiar with the matter revealed that Milan prosecutors and tax police are scrutinising Amazon’s role in facilitating online sales that allegedly allowed non-EU sellers, mainly from China, to evade Italian value-added tax (VAT).
Under Italian law, online marketplaces bear responsibility for ensuring that non-EU sellers using their platforms comply with VAT regulations.
Investigators believe that Amazon’s algorithm enabled the sale of goods from these foreign vendors without disclosing their identities, making it easier to avoid tax obligations.
Should the company be found liable, its financial penalty could increase significantly, reaching up to 3 billion euros when fines and interest are included.
The inquiry stems from routine tax inspections carried out in northern Italy, which led authorities to suspect large-scale tax fraud. The case, which initially surfaced last year, has now gained greater clarity with the latest revelations.
Amazon has not issued a statement regarding the ongoing probe and previously declined to comment when the investigation was first reported.
In a separate case, Italian tax police seized approximately 121 million euros in July 2024 from an Italian unit of Amazon. That investigation is focused on alleged tax fraud and illegal labour practices and remains ongoing.
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