Italy probing Amazon more than 1.2b euros in VAT of third party vendors

Italian prosecutors are examining whether online giant Amazon.com evaded 1,200 million euros in value added taxes (VAT) should have paid on behalf of certain third -party vendors, sources told AFP on Monday.

The total claim against the online retailer, including sanctions, could increase up to three billion euros ($ 3.14 billion), said a source in the financial crimes of Italy.

Preliminary investigation, confirmed by a source within the Office of the Prosecutor of Milan, implies a three -year period between 2019 and 2021.

An Italian law in 2019 caused electronic commerce companies to responsible for VAT due to their third sellers outside the European Union selling products to customers in Italy.

Previously, these third party vendors were responsible for paying the tax.

The Italian law was ahead of a reform of EU’s electronic commerce rules, which entered into force in July 2021, which sought to simplify how online platforms collect VAT.

A review of the 2019 to 2021 transactions by the Financial Crime Police of Italy found “unpaid VAT” by Amazon for a value of 1.2 billion euros, said a source of force to the AFP.

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“If you add the penalties to this sum … you get up to three billion euros,” said the source.

Police investigation began in the spring of 2024, ended in December.

Amazon said he would not comment on the ongoing investigations, but said he was “committed to complying with all applicable fiscal laws.”

The Seattle -based technology company added that it had paid direct and indirect taxes of 1.4 billion euros to Italy in 2023.

Preliminary investigation of prosecutors does not necessarily lead to positions.

Italian research arrives as president of the United States Donald TrumpWho has criticized the commercial deficit of his country with the EU, has threatened the block with reciprocal rates.

He has said that VAT, which is not a tariff, but a consumption tax, regardless of the origin of the good, could be subject to a reciprocal tax.

The EU measure that made the online platforms responsible for the tax obligations of third -party vendors was designed to guarantee fair competition for the block and recover the lost VAT.

The reform also eliminated an exemption on the collection of low -value goods tax.

Source: AFP