by InTrieste
Amazon has reached a major settlement with Italian tax authorities, agreeing to pay a total of €723 million following a wide-ranging investigation into its tax and labor practices in Italy.
The agreement follows an inquiry led by prosecutors in Milan that focused on Amazon’s logistics services unit and allegations that the company had circumvented Italian labor and tax laws. Investigators examined the use of cooperatives and limited liability companies to supply workers, a structure prosecutors said may have enabled the avoidance of value-added tax (VAT) and reduced social security contributions.
Prosecutors also accused Amazon of failing to collect and remit VAT on behalf of certain non-European Union third-party sellers operating on its platform, in violation of Italian regulations. According to Italian news reports, the investigation identified unpaid taxes totaling approximately €1.2 billion between 2019 and 2021.
Under the settlement reached on Wednesday, Amazon will pay €511 million to Italian tax authorities in the coming months. That amount is in addition to €212 million the company paid in recent days to resolve a separate tax dispute, bringing the total to €723 million.
Amazon denied any wrongdoing. In a statement, the company said the settlement reflected its “commitment to working constructively with Italian authorities,” while adding that it would “defend ourselves vigorously against any criminal proceedings, which we believe to be unfounded.”
The company emphasized its long-term presence in Italy, noting that it has invested more than €25 billion in the country over the past 15 years and employs more than 19,000 people directly.
Amazon also cautioned that Italy’s “attractiveness as an investment destination” could be weakened by what it described as unpredictable regulatory environments, disproportionate penalties and lengthy legal proceedings.
