Amazon pays 723 million to the Italian tax authorities to settle the VAT dispute, but the Milan prosecutor’s office continues investigations into possible fraud and evasion profiles
In one of the most significant clashes between the global e-commerce giant and the Italian state, Amazon has reached an agreement with the Revenue Agency to pay more 500 million euros by way of settlement of an important tax dispute. The agreement, announced last Wednesday, marks an impressive chapter in the open battle between the Italian authorities and the US multinational, but leaves many shadows and unresolved issues on the table.
The agreement, the result of months of negotiations, mainly concerns disputes relating to failure to pay VAT on orders managed via the platform between 2019 and 2021in particular for goods coming from non-EU sellers. According to the Revenue Agency and the Financial Police, Amazon did not correctly declare some tax obligations, with an estimated damage of almost three billion euros if taxes, penalties and interest are considered. The agreement provides that the company will pay approximately 511 million directly, to which they are added 212 million already paid by group companies such as Amazon Logistics and Amazon Italia Transportfor a total of 723 million in the context of the various protests.
Plea bargain or surrender? The replica of the giant
Amazon’s response was not long in coming: the company defined the agreement as “a constructive resolution” with the Italian authorities, reiterating however that it wanted to “defend with determination” any criminal profiles that it deems unfounded. In an official note, the group criticized the Italian regulatory environment, calling it “unpredictable” and potentially harmful to the country’s attractiveness as an investment destination.
It is not the first time that the multinational has come under fire for tax issues: the Milan prosecutors, in fact, have not agreed to dismiss the matter and are continuing investigations into alleged more serious tax evasion profiles which, according to the Prosecutor’s Office, could concern much larger sums and include, in addition to the VAT issue, also cases of alleged customs smuggling of goods imported from China.
The judicial framework remains open
The story, therefore, does not end with the signing of a check: the Milan Prosecutor’s Office has expressed explicit opposition to the agreement, announcing that it will continue investigations to verify tax fraud profiles relating to over 1.2 billion euros of potentially unpaid VAT. This means that, in addition to the simple tax definition, Amazon may have to face a criminal trial.
In parallel, other lines of judicial investigation involve the US company for alleged offenses linked to the movement and entry into Italy of foreign products through complex and non-transparent corporate mechanisms, with consequent avoidance of duties and taxes.
Between global numbers and local impact
The Amazon issue, in addition to the media hype and controversy, raises profound questions about the tax governance of digital multinationals in Europe. At a time when web giants are under pressure in many jurisdictions for aggressive tax planning practices, the Italian agreement is striking for the size of the figure and for the authorities’ determination to proceed beyond simple “plea bargaining”.
In the Italian context, this battle comes at a time when the tax authorities are trying to strengthen the fight against tax evasion and rethink the rules applicable to digital platforms. It remains to be seen whether the economic settlement of the dispute will mark a significant turning point or whether, instead, the criminal investigation will end up bringing the dispute back into the judicial spotlight, with implications that may extend far beyond national borders.
