As of February 13, 2025, Amazon had yet to publicly respond to the allegations, and the company did not comment when approached by the Financial Times.

Italian tax authorities have accused Amazon of evading €1.2 billion in VAT payments related to goods sold from China and other non-EU countries between 2019 and 2021.

The investigation was initiated following routine checks by tax police in northern Milan, revealing extensive details about the case.

The investigation, which was first reported in 2024, gained new attention with details emerging on February 14, 2025.

Amazon has stated that it will not comment on ongoing investigations but emphasized its commitment to comply with tax laws.

This accusation reflects a broader trend in Europe where tax authorities are increasingly scrutinizing large multinational companies for tax compliance.

The dispute arises during a transitional period for the EU's VAT collection process for online sales, particularly affecting low-value imports.

Reforms approved in December 2017 aimed to reduce the estimated €5 billion lost annually to VAT evasion on low-value goods, shifting responsibility for VAT collection to tech companies starting in 2021.

If the alleged illegalities are confirmed, Amazon could face penalties and interest that may increase its tax liability to €3 billion.

Validation of these allegations in court could threaten Amazon's business model throughout Europe, as VAT is a harmonized tax across EU countries.

American companies operating in Italy have expressed frustrations over the unpredictability of Italian tax authorities and their targeting of foreign businesses for additional revenue.

Concerns have been raised for local businesses as Chinese sellers account for approximately 70 to 80 percent of all online goods sold in Italy.