Amazon to pay $582m to settle Italy tax probe: sources

Amazon has agreed to pay 510 million euros (US$582 million) to settle a tax dispute with Italy’s tax authorities, according to sources familiar with the matter.

Despite the settlement, prosecutors in Milan plan to continue their investigation into the company, the sources said.

Prosecutors suspect Amazon of evading around 1.2 billion euros (US$1.39 billion) in taxes from 2019 to 2021, and expect to complete their probe early next year.

Two additional investigations are underway, covering alleged tax evasion from 2021 to 2024, and alleged customs and tax fraud related to imports from China.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

After €510m Italy settlement Amazon still faces open probes and more risk

The €510m settlement equals about 43% of the alleged €1.2b tax exposure for 2019 to 2021. Two active investigations on 2021 to 2024 and Chinese imports could add more liability.
Future charges or new settlements remain possible if the cases are resolved against Amazon.

Regulatory technology (Regtech) vendors can use Italy’s Directive on Administrative Cooperation 7 (DAC7) push to win platform tax work

Italy is pressing marketplaces on taxes, which creates demand for automated DAC7 reporting. Platform operators face €3,000 to €31,500 penalties for non-compliance, plus possible account closure or withholding of seller proceeds 1.
DAC7 requires EU platforms to collect seller identification and tax numbers. It also needs financial accounts and transaction details. First reports were due January 31, 2024, with annual deadlines after 2.
Compliance software firms can expect more audits by other EU countries as Italy steps up enforcement. The market widens beyond early adopters such as the Netherlands, which set maximum penalties at €900,000 3.
A probe into customs and tax fraud tied to imports from China is underway. Marketplaces that handle cross-border goods may need stronger import controls and Value-Added Tax (VAT) collection.