Italian prosecutors seek trial for Amazon EU unit in €1.2bn VAT case – report
Italian prosecutors have asked a court to put Amazon’s European subsidiary and four executives on trial for an alleged 1.2 billion euros ($1.37 billion) value-added tax (VAT) fraud. Reuters reported.
The request follows an investigation into suspected VAT fraud linked to online sales in Italy between 2019 and 2021.
The investigation focuses on Luxembourg-based Amazon EU Sarl and four company executives.
According to the charges reviewed by the news agency, prosecutors say Amazon’s algorithm and operating model allowed tens of thousands of non-EU sellers – mainly Chinese – to sell goods in Italy without revealing their identities.
Authorities say this allowed these sellers to avoid paying VAT, the report adds.
In a statement emailed to Retail Information NetworkAmazon said that “despite our disagreement with the premises of the investigation, in December 2025 we reached an agreement with the Italian Revenue Agency.”
The company added: “The settlement reflects our commitment to working constructively with the Italian authorities. We will vigorously defend our position on this baseless criminal case. Unpredictable regulatory environments, disproportionate sanctions and protracted legal proceedings are increasingly affecting Italy’s attractiveness as an investment destination.”
Italian law states that intermediaries facilitating sales in the country can be held jointly and severally liable for unpaid VAT owed by non-EU sellers using their platforms.
The request for trial is considered an unprecedented step in Italy for a case of this nature.
In past cases involving multinational corporations, once settlements were reached and payments were made, prosecutors typically closed related criminal investigations through plea deals or by dropping the proceedings.
In the trial request, Milan prosecutors identified the Italian Economy Ministry as the injured party.
Sources cited by Reuters said that if the allegations are upheld in court, the case could affect Amazon’s operating model across Europe, as VAT rules are harmonized across the European Union.
The investigation is part of several ongoing investigations involving the company in Italy.
The European Public Prosecutor’s Office is investigating suspicions of similar offenses covering the period 2021 to 2024.
Separately, Milan prosecutors are investigating whether Amazon maintained an undeclared permanent establishment in Italy between 2019 and 2024, which could have resulted in higher tax liabilities.
“Italian prosecutors seek trial for Amazon EU unit in €1.2 billion VAT case – report” was originally created and published by Retail Insight Network, a brand owned by GlobalData.
