Amazon Reaches Financial Settlement with Italian Tax Authorities
Amazon has reached an agreement with Italy's tax collection agency, the Agenzia delle Entrate, to settle a tax dispute by paying €510 million. This settlement, reported around December 10, 2025, addresses allegations of tax irregularities. In a broader resolution, an additional €212 million was paid by Amazon Logistics and Amazon Italia Transport to settle a separate but related tax dispute, bringing the total amount paid to Italian authorities to €723 million.
The financial agreement aims to resolve issues concerning alleged tax evasion, primarily focusing on the period between 2019 and 2021.
Milan Prosecutors Continue Criminal Investigation
Despite the financial settlement with the tax agency, Milan prosecutors have stated their intention to proceed with a criminal investigation into Amazon for alleged tax evasion. Prosecutors suspect that Amazon may have evaded approximately €1.2 billion in taxes during the 2019-2021 period.
The allegations center on several areas, including:
- Failure to declare Value-Added Tax (VAT) on 'distance sales' of millions of products imported from China, particularly from non-EU sellers.
- Alleged circumvention of labor and tax laws by Amazon's logistics unit, which reportedly used cooperatives or limited liability companies to supply workers, thereby reducing VAT liabilities and social security payments.
The investigation by Milan prosecutors is expected to conclude in early 2026. Furthermore, two additional probes are reportedly underway, covering alleged tax evasion from 2021 to 2024 and alleged customs and tax fraud related to Chinese imports.
Amazon's Stance and Broader Context
Amazon has maintained its commitment to complying with all applicable tax laws and has indicated it will 'forcefully defend' its position against any criminal proceedings, which it believes to be 'unfounded'. The company also expressed criticism of Italy's regulatory environment, noting that 'unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy's attractiveness as an investment destination'.
This is not Amazon's first tax settlement in Italy. An Italian unit of the company previously paid €180 million in early December 2025 to resolve a separate tax and labor probe. In 2017, Amazon also settled a tax litigation issue for €100 million covering the 2011-2015 period.
5 Comments
Katchuka
They paid up, what more do you want? Businesses optimize taxes, it's standard practice.
Loubianka
It's good that Amazon is paying something, but the significant discrepancy between the settlement amount and the alleged evasion suggests there's still a lot of grey area and unresolved issues.
BuggaBoom
They've done this before in Italy. It's a clear pattern of systemic tax avoidance.
Raphael
Another shakedown from overzealous European regulators. Amazon is being unfairly targeted.
Leonardo
The settlement is a positive step for Italy to recover some funds, but the ongoing criminal probe highlights the serious nature of the alleged evasion that still needs addressing.