US EditionExclusive-Italian prosecutors seek trial for Amazon, four execs over alleged $1.4 billion tax evasion
Prosecutors allege Amazon’s algorithm helped non-EU sellers avoid €1.2 billion VAT on sales in Italy from 2019 to 2021 despite a €527 million settlement.
- Milan prosecutors requested trial for Amazon EU Sarl and four managers over alleged VAT evasion worth around 1.2 billion euros, naming the Italian Economy Ministry as offended party.
- Prosecutors say an algorithm enabled the sales pattern that let tens of thousands of non-EU sellers, mostly Chinese, sell in Italy without disclosing identity between 2019 and 2021.
- In December, Amazon paid 527 million euros to settle the tax dispute with Italy's Revenue Agency and said it would 'forcefully defend its position on the potential ungrounded criminal case'; the company was not immediately available for comment.
- Milan prosecutors requested trial for Amazon over alleged VAT evasion, which, if upheld, could threaten the company's EU business model due to the EU VAT framework, amid parallel investigations in Italy.
- The EPPO is also probing similar alleged offences from 2021–2024, while Milan prosecutors investigate customs fraud and undeclared permanent establishment; on February 24, Italy's privacy watchdog ordered a local Amazon unit to stop using data on more than 1,800 employees.
32 Articles
32 Articles
Amazon faces criminal trial in Italy over €1.2 billion tax evasion
Amazon already paid Italy €527 million to settle a tax dispute. Milan prosecutors are pressing criminal charges anyway. Prosecutors have requested a trial for Amazon EU Sarl — the company's Luxembourg-based European unit — and four managers, including director Barbara Scarafia, over alleged VAT evasion on Italian online sales between 2019 and 2021, Reuters reports. — Read the rest The post Amazon faces criminal trial in Italy over €1.2 billion t…
Italian prosecutors seek trial for Amazon, four execs over alleged $1.4 billion tax evasion
Milan prosecutors are pushing for a trial against Amazon's European arm and four executives. This follows allegations of tax evasion amounting to 1.2 billion euros. Amazon had previously settled a tax dispute with Italy for 527 million euros. Prosecutors are proceeding with the criminal case despite the settlement. The investigation focuses on VAT evasion by non-EU sellers using Amazon's platform.
Amazon had agreed in December to pay 527 million euros, including interest, to the Italian Revenue Agency to settle the tax dispute.
For the accusation has escaped the Iva for approximately 1 billion and 200 million euros (ANSA)
Milan Prosecutors Uncover Unprecedented Tax Evasion Case Against Amazon
Milan prosecutors have requested a trial for Amazon's European unit and four managers over alleged tax evasion of 1.2 billion euros. Despite a previous settlement with Italy's Revenue Agency, this move marks a significant break from routine procedures, aiming for legal prosecution instead of closure.
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