💰 Massive Tax Probe
Italian prosecutors are investigating Amazon for alleged tax fraud worth $1.26B. The case focuses on online sales in Italy from 2019-2021. Three Amazon executives and its European unit in Luxembourg are under scrutiny. The total bill could hit $3B with penalties.
🛒 VAT Loophole Issues
Investigators claim Amazon’s algorithm lets non-EU sellers, mostly Chinese, avoid Italian VAT. Under Italian law, e-commerce platforms are co-responsible for VAT evasion. If proven, the case could impact Amazon's business model across Europe.
🚨 Past Investigations
Italy has targeted Amazon before. In July 2024, tax police seized $131M from Amazon Italia Transport over tax fraud and illegal labor practices. Authorities allege Amazon used intermediaries to reduce VAT and social security payments.
📉 Amazon’s Response
Amazon denies wrongdoing, saying it follows tax laws and paid $1.4B in Italian taxes in 2023. The company is among Italy’s top 50 taxpayers. It declined to comment on ongoing investigations but stated its commitment to compliance.
Will Amazon’s tax troubles change e-commerce rules in Europe?
