Amazon Pays €510 Million to Settle Italy Tax Probe | December 2025

Amazon Agrees to Pay €510 Million to Settle Major Tax Probe in Italy

On 10 December 2025, Amazon agreed to pay approximately €510 million to Italian tax authorities to settle a long-running tax investigation, according to sources cited by Reuters. The probe focused on alleged unpaid value-added tax (VAT) and customs duties linked to cross-border e-commerce transactions between 2019 and 2021.

The investigation was led by prosecutors in Milan, who assessed that the potential tax exposure in the case could reach as high as €1.2 billion. While the settlement addresses part of the dispute, prosecutors have not fully closed the investigation and may continue examining related financial records and international trade structures.

At the center of the case is Amazon’s handling of VAT on goods shipped from non-EU countries, particularly China, and sold through its European marketplace. Authorities believe that in some cases VAT and import duties were not properly declared, raising concerns about tax compliance by large multinational digital platforms.

The case has drawn attention across the European Union, as it highlights growing regulatory pressure on global e-commerce and technology firms. European authorities are increasingly focused on closing tax gaps in cross-border digital trade and ensuring that platforms comply with local tax laws.

This is not the first time Amazon has faced regulatory action in Italy. Earlier this month, the company paid around €180 million to resolve a separate tax and labour-related investigation, further underlining the stricter stance being taken by Italian regulators.

Amazon said it cooperated fully with authorities and agreed to the settlement to avoid prolonged legal uncertainty. The company maintains that it complies with local tax regulations and has strengthened its internal compliance systems in recent years.

While the settlement provides Amazon with partial relief, the case remains significant for the wider industry. Legal experts say it sends a clear signal that European governments are stepping up enforcement against complex tax arrangements used in cross-border e-commerce.