Portugal Colonial - Italian prosecutors seek trial for Amazon over tax evasion

The e-commerce giant in December said it had reached an agreement with Italy's tax agency over VAT it should have paid on behalf of third-party sellers.

Amazon did not disclose the amount, but Italian media said it paid more than 500 million euros ($575 million) to settle the dispute.

The deal did not stop prosecutors from seeking criminal proceedings against the company, the Ansa news agency said Thursday.

The investigation into Amazon covers a three-year period, from 2019 to 2021, when the EU adopted reforms simplifying e-commerce tax regulations across the bloc.

Prosecutors say that between 2019 and 2021, Amazon failed to provide -- or only partially provided -- required data on non-EU sellers and imported goods through its Marketplace platform.

This allegedly misled tax authorities and allowed the company to avoid the VAT payments.

Since 2019, Italian law has made e-commerce platforms responsible for VAT owed on all sales from outside the European Union ahead of an EU reform that took effect in 2021.

Amazon said Thursday it would contest any case brought against it, stressing it is among the top 50 taxpayers in Italy.

The company warned that unpredictable rules and lengthy legal procedures would hurt Italy's business climate, but said it would comply with its tax obligations.

The request for a trial still needs a judge's approval.

A.F.Rosado--PC