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Italian prosecutors have formally notified Amazon’s European unit and two senior managers that they could face trial over alleged customs violations and unpaid taxes linked to Chinese goods sold through the company’s online marketplace.
The notice marks a significant development in an investigation into the movement of products from outside the European Union through Amazon’s Italian logistics network.
Prosecutors allege that more than 15 lakh products entered and circulated through the system without proper payment of import taxes and customs duties. They have calculated more than €3.52 million in allegedly unpaid import value-added tax, while the assessment of customs duties remains incomplete.
Prosecutors Issue Notice Covering 70 Suspects
The investigation is being led by prosecutors in Milan and involves Amazon EU S.à.r.l., the company’s European unit based in Luxembourg.
The notice concluding the investigation was served on 70 suspects, including two Amazon managers and operators of online businesses accused of importing goods from China.
Under Italian law, such a notice is generally issued before prosecutors decide whether to request a trial.
It gives the people and companies under investigation an opportunity to submit documents, evidence and arguments in their defence.
The notification does not mean that a court has found Amazon or the other suspects guilty.
According to prosecutors, the alleged violations involved goods imported from outside the European Union and subsequently sold through Amazon’s marketplace and fulfilment network.
Investigators claim that the proper customs declarations were not completed and the required import taxes were not paid.
The reported €3.52 million figure concerns import VAT alone. Authorities are still calculating the customs duties allegedly avoided.
The overall amount under investigation could therefore increase once that assessment is completed.
Amazon’s Logistics System Comes Under Scrutiny
The allegations concern how Amazon’s marketplace and logistics operations handled goods supplied by sellers located outside the European Union.
Amazon allows independent merchants to sell products through its platform and, in many cases, use its warehouses and delivery services.
This arrangement can make international trade easier for sellers while allowing customers to purchase imported products through a familiar online service.
However, imported goods are subject to customs rules and taxation requirements.
Investigators allege that Amazon failed to establish adequate organisational safeguards to prevent customs offences within its logistics operations.
They also claim that the company should have been aware of the scale of goods arriving from China.
According to the prosecution document, approximately 80% of the products handled through the relevant logistics system originated in China.
Prosecutors further allege that Amazon’s automated systems operating in Italy did not have direct access to important seller identification information stored abroad.
This allegedly limited the company’s ability to check whether sellers and imported products complied with customs requirements.
The prosecution’s position is that Amazon’s logistics arrangements allowed non-EU goods to move through warehouses and reach customers despite suspected irregularities.
These remain allegations that would need to be established through legal proceedings.
How Import VAT And Customs Duties Work
When goods enter the European Union from another country, importers may be required to declare the products and pay applicable taxes.
Customs duties are charges imposed on certain imported goods.
Value-added tax, or VAT, is a tax associated with the sale and consumption of products and services.
In India, the closest familiar comparison is the Goods and Services Tax, although the legal systems and applicable rates differ.
The difficulty in online marketplaces arises when goods pass through several businesses before reaching customers.
A product may be manufactured in China, handled by an overseas seller, stored in a European warehouse and finally sold through an online platform.
Authorities must determine which parties are responsible for declarations, tax payments and compliance checks.
In the Amazon investigation, prosecutors are examining whether the company’s operating model allowed foreign sellers to avoid these obligations.
Earlier Raids And Separate Tax Investigations
The latest development follows raids conducted in November 2025 at Amazon’s Italian headquarters in Milan and a logistics facility near Bergamo.
Those searches formed part of the investigation into suspected customs and tax fraud involving Chinese imports.
The company is also facing a separate Italian legal dispute over alleged VAT evasion connected to online marketplace sales between 2019 and 2021.
In that earlier case, prosecutors sought a trial over allegations involving approximately €1.2 billion in unpaid taxes.
The newly reported customs investigation is distinct from that larger VAT case and concerns different alleged violations.
Amazon has rejected the latest allegations and said it intends to defend itself.
The company maintains that it follows applicable laws and requires sellers operating on its marketplace to comply with legal requirements.
It has also warned that prolonged proceedings and unpredictable regulatory conditions could affect Italy’s attractiveness to international investors.
The outcome now depends on whether prosecutors seek a trial after considering the responses submitted by Amazon and the other suspects.
What This Means For You
Online sellers importing goods across borders should maintain accurate customs declarations and tax records, even when using a large e-commerce platform’s delivery network. Customers should distinguish an ongoing investigation from a finding that a company or seller has broken the law.
