Prosecutors suspect that the e-commerce giant functioned as a “Trojan horse,” allowing Chinese goods to enter Italy without paying applicable sales taxes or customs duties, potentially costing the state hundreds of millions of euros. Court documents seen by Reuters indicate that the scheme may extend beyond Italy, affecting other European Union markets.
At a logistics hub in Cividate al Piano, northern Bergamo, officers from the Guardia di Finanza and Italy’s customs agency seized roughly 5,000 products, including toys, mobile phone covers, air fryers, pens, and small scissors. In Milan, Amazon’s Italian headquarters was also searched, with IT equipment seized and the manager responsible for the movement of goods within Italy identified.
Amazon declined to comment on the raids but said it is “committed to complying with all applicable tax laws and we cooperate fully with all relevant authorities.”
Investigation Expands on Previous Tax Case
The current probe stems from a prior investigation into an alleged €1.2 billion tax evasion scheme. Milan prosecutors, collaborating with the Monza branch of the Guardia di Finanza, are examining whether goods imported from China were being funneled into Italy through undisclosed channels and sold via Amazon’s marketplace, in violation of EU customs regulations.
Sources suggest that the total number of products involved could reach 500,000, with multiple Italian companies—many believed to be front companies for Chinese entities—linked to the operation.
Potential EU-Wide Implications
Authorities expect the investigation to expand across the 27-nation European Union. In July, Milan prosecutors presented the inquiry to counterparts from Germany, France, the Netherlands, Poland, Spain, Belgium, Sweden, and Ireland at the Eurojust headquarters in The Hague.
The case raises broader questions about compliance and customs enforcement across the EU, though it remains unclear how U.S. regulators will view the proceedings.
Ongoing Scrutiny of Amazon’s Tax Practices
The investigation runs parallel to an earlier probe into Amazon’s Luxembourg-based European unit and three managers over alleged tax fraud in Italy between 2019 and 2021. Italian tax authorities have submitted a settlement proposal to Amazon, with a decision due by December.
Prosecutors allege that Amazon’s algorithms allow non-EU sellers, predominantly from China, to sell in Italy without disclosing suppliers, enabling avoidance of value-added tax (VAT). Under Italian law, platforms are jointly liable for unpaid taxes by non-EU sellers.
Additionally, the European Public Prosecutor's Office has launched a separate review of Amazon’s accounts from 2021 to 2024 following the introduction of stricter EU marketplace tax rules.
The raids mark a significant escalation in Italy’s efforts to enforce tax and customs compliance within the e-commerce sector and signal potential wider investigations across Europe.