Amazon is under investigation in Italy for suspected tax evasion and customs fraud involving the importation of Chinese goods without paying required taxes and duties. Italian authorities raided two Amazon sites, seizing around 5,000 products and IT equipment, and identified a manager responsible for goods movement. Prosecutors allege Amazon acted as a “Trojan horse,” facilitating smuggling through undisclosed channels and enabling non-EU sellers to avoid VAT, potentially costing the Italian state hundreds of millions of euros. This probe is linked to a broader 1.2 billion euro tax evasion case involving Amazon’s European operations.

The investigation is expected to expand across the European Union, with Milan prosecutors presenting their findings to counterparts from multiple EU countries. The case highlights tensions over customs and tax compliance in e-commerce, with Amazon’s algorithm reportedly allowing anonymous sales from non-EU sellers. Meanwhile, the European Public Prosecutor’s Office has launched a separate inquiry into Amazon’s accounts following new EU sales tax regulations. Amazon maintains it complies with all tax laws and cooperates with authorities.