Italian prosecutors are investigating Amazon and three executives for alleged tax evasion worth 1.2 billion euros. The investigation focuses on online sales in Italy between 2019 and 2021.
Italian authorities have put Amazon’s European branch in Luxembourg and three executives under scrutiny for tax fraud. According to Reuters sources, the total amount could reach 3 billion euros when fines and interest are included.
The investigation shows that Amazon’s algorithm allows non-EU sellers, mainly Chinese, to sell goods without disclosing their identity. This helps these sellers evade Italian tax. Under Italian law, an intermediary offering goods in Italy is jointly responsible for non-payment of VAT by non-EU sellers on their e-commerce platform.
Ongoing investigations
This is not the first investigation into Amazon’s activities in Italy. In July 2024, Italian police seized about 121 million euros from an Italian Amazon division to investigate alleged tax fraud and illegal labor practices.
The current investigation stemmed from routine checks by tax police in an area north of Milan.
Amazon has not yet responded to the new Italian investigation.
Tip: European Commission launches competition investigation into Amazon