Amazon Faces Trial in Italy Over Alleged $1.4 Billion Tax Evasion

Italian prosecutors have requested a court to put Amazon and four of its executives on trial over alleged tax evasion worth about $1.4 billion. The investigation, led by prosecutors in Milan, focuses on value‑added tax (VAT) linked to third‑party sellers operating on the company’s marketplace.

According to investigators and Italy’s financial police, the case centers on sales made by non‑European Union merchants through Amazon’s platform. Under rules introduced in 2019, online marketplaces can be held responsible if VAT owed by non‑EU sellers on transactions with Italian customers is not properly collected and paid.

Authorities estimate that unpaid VAT tied to such transactions between 2019 and 2021 may total around €1.2 billion, equivalent to roughly $1.4 billion. Prosecutors argue that the structure of Amazon’s marketplace may have allowed some sellers to avoid properly declaring their identity and tax obligations, potentially facilitating the alleged shortfall.

Amazon has previously said it complies with applicable tax laws and cooperates with authorities. The company has faced several tax-related investigations in Italy in recent years and in 2025 agreed to pay about €510 million to settle a separate dispute with the country’s tax agency. If the court approves the request, the case could become one of the most significant tax trials involving a major technology company in Italy.