The Amazon.com Inc. logo will appear on the screenItalian prosecutors are looking into whether online giant Amazon.com has circumvented 1.2 billion euros at 1.2 billion euros (VAT) that should be paid on behalf of certain third party sellers, according to information The source told AFP on Monday.
Total claims against online retailers, including fines, could increase to 3 billion euros ($3.14 billion), according to sources from the Italian Financial Crimes Police.
Preliminary investigations confirmed by sources within the Milan Prosecutor’s Office include three years from 2019 to 2021.
Under Italian law of 2019, I was in charge of e-commerce business, where third party sellers outside the European Union sellers selling products to Italian customers, are responsible for VAT payable.
Previously, these third party sellers were responsible for paying taxes.
Italian law precedes the reforms to the EU e-commerce regulations that came into effect in July 2021, which attempted to simplify the way online platforms collect VAT.
A review of transactions by Italian Financial Crimes Police in Italy between 2019 and 2021 found that Amazon’s “unpaid VAT” reached 1.2 billion euros, military sources told AFP.
“If you add penalties to this total… you get up to 3 billion euros,” the source said.
The police investigation, which began in the spring of 2024, concluded in December.
Amazon said it would not comment on the ongoing investigation, but it said it “promised to comply with all applicable tax laws.”
The Seattle-based tech company added that in 2023 it paid Italy 1.4 billion euros in direct and indirect taxes.
A preliminary investigation by a prosecutor does not necessarily lead to accusations.
The Italian investigation comes when US President Donald Trump, who opposed his country’s trade deficit with the EU, threatened the bloc with mutual tariffs.
He says that VAT, a sales tax rather than a tariff, can be subject to mutual collection, regardless of the origin of the goods.
The EU measures that made third-part sellers’ tax liability into an online platform were designed to ensure fair competition between the bloc and the lost VAT.
The reform also removed exemptions on tax collection on low-value products.
