Prosecutors in Milan have requested that Amazon and four of its managers stand trial over allegations of large-scale tax evasion linked to online sales in Italy, in a case that could test the legal responsibilities of digital marketplaces across Europe.
According to sources familiar with the investigation, Milan prosecutors are pursuing criminal charges against the company’s European unit, Amazon EU Sarl, and several executives over alleged value-added tax (VAT) evasion totaling roughly €1.2 billion, equivalent to about $1.4 billion.
The move is unusual in Italy because Amazon already reached a settlement in December with the country’s tax authority, agreeing to pay €527 million including interest to resolve the civil dispute.
In previous cases involving multinational corporations, criminal investigations were typically closed once a financial settlement was reached. However, prosecutors in Milan decided to continue pursuing the case, requesting that a judge send the matter to trial.
A preliminary hearing will now determine whether the defendants should be formally indicted or whether the case will be dismissed.
Investigators claim that between 2019 and 2021 Amazon’s operating systems and algorithms allowed tens of thousands of non-European sellers — many based in China — to sell goods in Italy without properly declaring their identities or paying the required VAT.
Under Italian law, online marketplaces that facilitate sales within the country can be held jointly responsible for unpaid VAT owed by non-EU sellers operating through their platforms.
In the prosecutors’ request for trial, Italy’s Economy Ministry was identified as the injured party in the case.
Amazon previously said it strongly disagrees with the criminal allegations. Following the tax settlement in December, the company stated it would “forcefully defend” its position against what it described as an unfounded criminal case.
Legal experts say the case could carry broader implications because VAT rules are harmonized across the European Union. If courts uphold the prosecutors’ arguments, the outcome could influence how digital platforms manage third-party sellers throughout the region.
The investigation in Milan is also part of a wider series of legal challenges facing the company in Italy.
The European Public Prosecutor’s Office is examining similar alleged tax offences covering the period from 2021 to 2024. Meanwhile, Italian prosecutors are conducting additional probes related to possible customs and tax fraud involving imported goods as well as whether Amazon maintained an undeclared permanent establishment in the country between 2019 and 2024.
Separately, Italy’s privacy regulator recently ordered a local Amazon unit to stop using the personal data of more than 1,800 employees at a warehouse near Rome, adding another regulatory issue to the company’s growing legal challenges in the country.