Amazon Faces €1.2 Billion Tax Evasion Probe in Italy

Italian prosecutors are investigating Amazon and three executives over alleged tax evasion totaling €1.2 billion. The probe covers Amazon's European unit and activities in Italy from 2019-2021. The investigation suggests Amazon facilitated VAT evasion by enabling non-EU sellers to operate anonymously. Total bill including penalties may rise to €3 billion.

Italian prosecutors have launched an investigation into Amazon and three of its senior executives, accusing them of orchestrating a tax evasion scheme valued at €1.2 billion. This development builds upon an earlier report divulging the probe's scope and implications.

Milan-based prosecutors, along with tax police, have implicated the executives and Amazon's European headquarters in Luxembourg, targeting their online sales operations in Italy between 2019 and 2021. Sources revealed that Amazon's platform enabled non-EU sellers, primarily from China, to skirt Italy's VAT through anonymity.

Further financial repercussions loom, with potential costs ballooning to €3 billion, inclusive of penalties and interest. This investigation is part of broader scrutiny that recently led to seizing about €121 million from Amazon's local unit due to allegations of tax fraud and labor-related violations.