Italian prosecutors are investigating Amazon and three executives for alleged tax evasion of €1.2 billion (US$1.26 billion).

The inquiry, which began in 2021, focuses on possible fraud linked to online sales in Italy from 2019 to 2021.

Authorities suspect Amazon’s algorithm allowed non-EU sellers, mainly from China, to sell goods without revealing their identities, potentially avoiding Italy’s VAT.

Under Italian law, Amazon could share liability.

According to Italian daily Corriere della Sera, Amazon may face a tax bill of up to €3 billion (US$3.15 billion), including penalties and interest.

The case could impact Amazon’s business model across Europe, particularly regarding VAT regulations.

Amazon has declined to comment but reaffirmed its commitment to tax compliance, noting it paid over US$1.4 billion in Italian taxes in 2023.

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