Italian Court Investigates Possible €1.2 Billion Fraud at Amazon

Italian authorities are investigating a case of suspected fraud at US e-commerce giant Amazon. The internet giant had to pay 1.2 billion euros in VAT on behalf of several third-party sellers, according to an investigation into transactions carried out between 2019 and 2021, sources told AFP.

“If we add the fines to that amount of arrears, we get to 3 billion euros,” a police source said. During those three years, Amazon was responsible for the VAT owed by third-party sellers outside the European Union on goods sold to Italian customers.

A 2019 Italian law made e-commerce companies responsible for VAT owed by non-EU sellers rather than leaving it up to the sellers. The Italian law came ahead of a reform of EU rules on e-commerce.

The police investigation began last spring and was completed in December. The public prosecutor’s office in Milan is now conducting a preliminary investigation. Such an investigation does not necessarily lead to charges. Amazon has previously said it would not comment on ongoing investigations but is “committed to complying with applicable tax laws.” The company also said it paid $1.4 billion in taxes in Italy in 2023.