Italian prosecutors have asked a court to put Amazon’s European unit and four managers on trial over an alleged €1.2bn ($1.37bn) in value-added tax (VAT) evasion, Reuters reported.
The request stems from an investigation into suspected VAT evasion linked to online sales in Italy between 2019 and 2021.
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The probe focuses on Luxembourg-based Amazon EU Sarl and four company managers.
According to charges reviewed by the news agency, prosecutors allege that Amazon’s algorithm and operating model allowed tens of thousands of non-EU sellers – primarily from China – to sell goods in Italy without revealing their identities.
Authorities claim this enabled those sellers to avoid paying VAT, the report added.
In an emailed statement to Retail Insight Network, Amazon said that “despite disagreeing with the premises of the investigation, in December 2025, we reached an agreement with the Italian Revenue Agency”.
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By GlobalDataThe company added: “The settlement reflects our commitment to working constructively with Italian authorities. We will forcefully defend our position on the ungrounded criminal case. Unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy’s attractiveness as an investment destination.”
Italian law states that intermediaries facilitating sales in the country can be held jointly responsible for unpaid VAT owed by non-EU sellers using their platforms.
The request for trial is regarded as an unprecedented move in Italy for a case of this nature.
In earlier cases involving multinational companies, once settlements were reached and payments made, prosecutors generally closed related criminal investigations through plea agreements or by dropping the proceedings.
In the trial request, Milan prosecutors identified the Italian Economy Ministry as the offended party.
Sources cited by Reuters said that if the allegations are confirmed in court, the case could affect Amazon’s operating model across Europe, as VAT rules are harmonised across the European Union.
The investigation forms part of several ongoing probes involving the company in Italy.
The European Public Prosecutor’s Office is examining similar suspected offences covering the period from 2021 to 2024.
Separately, Milan prosecutors are investigating whether Amazon maintained an undeclared permanent establishment in Italy between 2019 and 2024, which could have led to higher tax liabilities.
