Amazon Under Scrutiny: Italian Tax Evasion Probe Intensifies

Italian prosecutors are investigating Amazon and its executives for alleged tax evasion of 1.2 billion euros. The probe has uncovered potential VAT fraud involving non-EU sellers, primarily from China. Amazon is accused of facilitating these sales, posing a threat to its business model across Europe.

Amid rising tensions around tax compliance, Italian prosecutors are probing Amazon and three of its executives for allegedly evading 1.2 billion euros in taxes. The investigation, first reported by Corriere della Sera, highlights potential vulnerabilities in Amazon's business model.

Milan prosecutors and tax police have set their sights on Amazon's European unit and three managers for suspected tax fraud in Italy's online sales sector during 2019-2021. The probe suggests Amazon's platform enabled non-EU sellers, mainly Chinese, to bypass Italian VAT.

The company's practices could lead to a penalty reaching 3 billion euros. As the investigation evolves, it raises questions about the implications for Amazon across Europe, challenging its e-commerce strategy under harmonized EU tax regulations.

(With inputs from agencies.)