Milan prosecutors seek trial of Amazon and four managers over VAT evasion
Milan prosecutors have requested trial of Amazon and four managers for alleged VAT evasion of approximately 1.2 billion euros from 2019 to 2021, allegedly caused by an algorithm that remained unchanged despite being indifferent to EU tax obligations. Amazon settled with Italian tax authorities for 527 million euros in December 2025.
What happened
Milan prosecutors requested trial for Amazon EU Sarl and four managers—three Amazon employees and one US executive—for alleged VAT evasion between 2019 and 2021. The Procura di Milano charged that Amazon's warehouse algorithm was deliberately not modified despite being 'indifferent' to EU tax and customs obligations, resulting in alleged VAT evasion of approximately 1.2 billion euros.
The Guardia di Finanza di Monza investigation revealed that the system remained unchanged over time and used mechanisms such as substituting identical goods from different sellers within warehouses—ostensibly for delivery speed and efficiency—without ensuring compliance with tax regulations.
Reported impact
The alleged VAT evasion over three years totaled approximately 1.2 billion euros. In December 2025, Amazon settled with Italy's tax agency (Agenzia delle Entrate) and agreed to pay 527 million euros, including interest.
Index analysis
The prosecutors' investigation is one of three separate inquiries into Amazon operations in Italy. A second investigation involves the algorithm's role in alleged smuggling of Chinese goods through Amazon warehouses, and a third concerns alleged evasion of direct taxes related to hidden permanent establishment in Italy.
Governance controls
The case is before judge Tiziana Landoni of the preliminary hearing court (gup), who must schedule the preliminary hearing to determine if trial proceeds.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.