Italian prosecutors target Amazon over sale of Chinese goods
AMZN•Italian prosecutors say Amazon’s European unit and two senior managers could face trial over allegedly unpaid import VAT and customs duties on Chinese goods. Prosecutors have quantified unpaid VAT at more than €3.52 million, with the total duties still being calculated.
1. Investigation notice
Italian prosecutors have notified Amazon EU S.à.r.l. and two senior managers that they could face trial over the sale of non-EU goods without proper payment of import VAT and customs duties. The notice concluding the investigation is a procedural step that usually precedes a request for trial.
2. Alleged tax shortfall
Prosecutors allege that more than 1.5 million products from outside the European Union were sold through Amazon’s marketplace and logistics network in Italy without proper payment. They have so far quantified unpaid import VAT at more than €3.52 million; customs authorities are still calculating the duties allegedly evaded, so the overall claim could increase.
3. Amazon response
The notice covers 70 suspects, including Amazon, the two managers and operators of online stores accused of importing mainly Chinese-made goods while bypassing customs declarations and import taxes. Amazon said it would “vigorously defend our position in this ungrounded proceeding” and said it requires marketplace sellers to comply with applicable laws. Prosecutors allege Amazon failed to implement measures to prevent customs offences and failed to carry out adequate checks.
