Amazon Faces Potential Trial in Italy Over Unpaid Import VAT

Last updated: November 2026 · Status: investigation concluded, no trial requested yet

Amazon could face trial in Italy over unpaid import VAT on more than 1.5 million non-EU products sold through its marketplace and logistics network. On 10 November 2026, Milan prosecutors served notice that they had concluded their investigation into Amazon EU S.à r.l., two senior managers and dozens of online sellers, according to Reuters.

Prosecutors put the unpaid import VAT at more than €3.52 million. Customs duties are still being calculated, so the final figure could rise. Amazon calls the case unfounded and says it will defend itself vigorously.

At a glance

Attribute	Detail
Unpaid import VAT	More than €3.52 million
Customs duties	Still being calculated by customs authorities
Products	More than 1.5 million non-EU items, mainly made in China
Suspects	70: Amazon EU S.à r.l., two senior managers and dozens of online sellers
Legal basis	Customs offences; corporate liability under Legislative Decree 231/2001
Stage	Notice concluding the investigation, served 10 November 2026
Amazon's position	Rejects the allegations and will contest them
Next step	Possible request for trial, then a preliminary hearing

What Are Prosecutors Alleging Against Amazon?

Milan prosecutors allege that more than 1.5 million non-EU products, mainly from China, were sold through Amazon's Italian marketplace and warehouses without proper payment of import VAT and customs duties. They say Amazon lacked controls to prevent customs offences and to check sellers and their documents.

The goods were mostly low-value items such as phone covers, air fryers, toys and pens, often priced at a few euros, according to Economy Magazine. The individual sellers are described as the material executors of the alleged smuggling.

Allegation	Detail
Origin of goods	Amazon knew or should have known about 80% of goods in its Italian logistics system came from China
Controls	No adequate measures to prevent customs offences or check sellers, customs documents and goods flows
Seller data	Automated logistics systems had no direct access in Italy to seller identification data held abroad
Managers	Two senior managers who should reasonably have known obligations were not met, given their supervisory roles

The two managers are not accused of handling imports directly. Their alleged exposure stems from their senior positions at different times.

How Did the Amazon Customs Investigation Unfold?

The customs probe moved from raids to a closure notice in about a year. It is one of several Italian cases against Amazon, including an alleged €1.2 billion VAT evasion that TaxSpoc first covered in 2025.

Date	Event
10 Nov 2026	Milan prosecutors serve notice concluding the customs investigation; 70 suspects named
Mar 2026	In the separate €1.2 billion case, prosecutors request a trial over sales from 2019 to 2021
Dec 2025	Amazon agrees to pay about €527 million, including interest, to Italy's Revenue Agency to settle a tax dispute
Nov 2025	Police raid Amazon's Milan headquarters and a logistics hub near Bergamo; about 5,000 items seized

Eurojust later briefed several European judicial authorities. That suggests the scrutiny of marketplace import flows may spread beyond Italy.

Is a Marketplace Liable for Sellers' Unpaid Import VAT?

In Italy, yes, to a significant degree. Italian law makes a platform that offers goods for sale in Italy jointly liable for VAT that non-EU sellers on it fail to pay. Prosecutors are now testing whether that responsibility also covers customs controls in the platform's own warehouses.

The EU's 2021 e-commerce VAT package pushed in the same direction. It made marketplaces the deemed supplier for VAT on many low-value imports and on sales by non-EU sellers, shifting collection duties onto platforms.

On top of tax rules, Italy's corporate liability law, Legislative Decree 231/2001, lets prosecutors pursue a company for offences committed in its interest when it lacked adequate organisational controls. That is the basis for the notice to Amazon EU. Italy has used similar pressure against other platforms, as in its VAT case against Meta, X and LinkedIn.

How Has Amazon Responded?

Amazon rejects the allegations and says it will vigorously defend its position in what it calls an ungrounded proceeding. It argues that its seller agreements make sellers responsible for customs clearance.

The company also says it ranks among Italy's top 25 taxpayers and employs more than 19,000 permanent staff there. It warned that unpredictable rules, long proceedings and disproportionate penalties are hurting Italy's appeal to investors.

What Should Marketplaces and Online Sellers Do Now?

The case tests whether contractual terms are enough to shift customs responsibility onto sellers. Prosecutors argue that a platform which runs the logistics must also run the controls. Marketplaces and importers should prepare as if that view could prevail.

1. Verify sellers locally. Keep seller identity data accessible in the country where goods are stored.
2. Check customs evidence. Confirm declarations and proof of import VAT payment before goods enter fulfilment centres.
3. Document controls. Build customs checks into a corporate liability compliance programme that would survive scrutiny.
4. Flag high-risk flows. Monitor large volumes of low-value goods from a single origin.
5. Tighten seller records. Non-EU sellers should keep complete import files and use a reliable customs representative.

Businesses that need specialist support can compare customs and indirect tax advisers in the TaxSpoc Directory.

Frequently Asked Questions

Why is Amazon being investigated in Italy?

Milan prosecutors allege that more than 1.5 million non-EU products, mainly from China, were sold through Amazon's Italian marketplace and warehouses without proper payment of import VAT and customs duties. They also allege Amazon failed to put adequate controls in place to prevent customs offences.

How much import VAT is Amazon accused of not paying?

Prosecutors put unpaid import VAT at more than €3.52 million. Customs duties are still being assessed by the customs authorities and could add to that figure. Some Italian outlets describe €3.5 million as the combined VAT and duties loss.

Is Amazon going to trial in Italy?

Not yet. Prosecutors have concluded the investigation, a step that usually precedes a request for trial. Amazon and the other suspects can first file arguments and evidence. A preliminary hearing judge would then decide whether the case goes ahead.

Is this the same as the €1.2 billion Amazon VAT case?

No. The €1.2 billion case concerns alleged VAT evasion on online sales by non-EU sellers from 2019 to 2021. Prosecutors requested a trial in that case in March 2026. The customs case concerns import VAT and duties on goods moving through Amazon's Italian logistics network.

Are marketplaces liable for sellers' unpaid VAT in Italy?

Yes. Italian law makes platforms jointly liable for VAT that non-EU sellers on them fail to pay. EU rules introduced in 2021 also treat marketplaces as the deemed supplier for VAT on many low-value imports and on sales by non-EU sellers.

What to Watch Next

Prosecutors must now decide whether to request a trial, and customs authorities will finalise the duties figure. Whatever the outcome, the Amazon Italy import VAT case signals that platforms running fulfilment networks will be judged on the controls they operate, not only on their contracts.

Sources: Reuters via Investing.com, 10 November 2026 · Economy Magazine, 10 November 2026 · Il Giorno · Retail Systems