Amazon Could Face Trial in Italy Over Chinese Goods Sold Without VAT and Customs Duties

Amazon, the world’s biggest online retailer, could be put on trial in Italy over the sale of Chinese goods on which prosecutors say the proper import taxes were never paid.

Italian prosecutors in Milan have told Amazon’s European arm and two of its senior managers that they could face trial, according to a document seen by the news agency Reuters. The notice marks the latest step in an investigation that began with police raids on Amazon’s Italian offices a year ago — and it raises the stakes for one of the largest foreign investors in Italy.

The case is about tax: value-added tax (VAT) and customs duties on goods shipped into Italy from outside the European Union. Prosecutors say more than 1.5 million products were sold through Amazon’s marketplace and logistics network in Italy without those taxes being paid properly. Amazon says it has done nothing wrong and has promised to “vigorously defend” itself.

What happened today

On Tuesday, 10 November 2026, Milan prosecutors served a formal notice on Amazon EU S.à r.l. — the Luxembourg-based company that runs Amazon’s European business — and on two senior managers. The notice says the investigation into the company is complete, and it sets out the accusations against them.

Under Italian law, this kind of notice is a procedural step that usually comes before prosecutors request a trial. The people and companies named in it have the right to submit their own arguments, documents and evidence before prosecutors decide whether to go ahead.

The notice was served under Italy’s corporate liability law, which allows a company itself — not just the individuals who work for it — to be held responsible for alleged offences.

Prosecutors have so far put a figure on part of the alleged unpaid tax. They say the unpaid import VAT amounts to more than €3.52 million, or about $3.95 million. Customs authorities are still calculating how much in customs duties was allegedly avoided, so the total claim could grow once that work is finished.

What prosecutors say Amazon did wrong

The heart of the case is simple to explain, even if the details are complex. When goods are brought into Italy from outside the European Union, two kinds of tax are normally due: customs duty, which is a tax on imported goods, and import VAT, a sales tax charged on goods entering the country. Prosecutors say that for a large number of products sold through Amazon in Italy, those taxes were not paid as they should have been.

Milan prosecutors allege that more than 1.5 million products from outside the EU were sold through Amazon’s marketplace and logistics network in Italy without the proper payment of import VAT and customs duties. Most of the goods were made in China, according to the prosecutors.

The notice was not served on Amazon alone. In total, 70 suspects were notified, including the two Amazon managers and scores of operators of online stores. Those store operators are accused of importing mainly Chinese-made goods while bypassing customs declarations and import taxes — in other words, bringing goods into the country without declaring them properly to the tax authorities.

But the prosecutors’ argument goes further than the sellers. They say Amazon itself failed in its duties as the platform and logistics provider that handled the goods. According to the document seen by Reuters, prosecutors argue that Amazon:

• Failed to put in place organisational measures capable of preventing customs offences.
• Allowed goods from outside the EU to circulate through its logistics network despite alleged irregularities in customs compliance.
• Knew, or should reasonably have known, that around 80% of the goods handled through its Italian logistics system originated in China, yet failed to carry out adequate checks on sellers, customs documentation and the movement of goods through its warehouses.
• Relied on automated logistics systems that did not have direct access in Italy to key seller identification data, which prosecutors say was held abroad.

Prosecutors also say the goods were stored in Amazon warehouses and sold through the company’s marketplace and fulfilment network — the system in which sellers send their stock to Amazon, and Amazon stores it, packs it and delivers it to customers.

In short, the prosecutors’ case is that Amazon was not just a neutral website where other people sold things. They say it was deeply involved in moving and storing the goods, and that it should have checked that the taxes on them had been paid.

How the case began: the raids of November 2025

This is not a new investigation. It began a year ago, when it was first reported by Reuters in November 2025. At that time, police raided Amazon’s Italian headquarters in Milan and a logistics hub near the city of Bergamo, as part of a probe into suspected customs and tax fraud linked to Chinese imports.

At the time, prosecutors suspected that Amazon had acted as a “Trojan horse” — a phrase they used to suggest that the company’s systems had allowed Chinese goods to enter Italy without the payment of customs duties and sales taxes.

The case comes from a wider effort by Milan prosecutors and Italy’s financial police to investigate alleged tax and customs violations linked to e-commerce imports from Asia. Back in November last year, prosecutors estimated that the scheme could involve hundreds of thousands of products and might extend beyond Italy.

That warning now looks well founded. Judicial authorities from several European countries were later briefed on the inquiry through Eurojust, the European Union Agency for Criminal Justice Cooperation — a sign that investigators in other countries are watching the case closely.

What Amazon says

Amazon has rejected the accusations. In a statement, the company said it was “committed to complying with all applicable laws and regulations in every country where we operate and we require all sellers on our marketplace to do the same.”

It added: “We will vigorously defend our position in this ungrounded proceeding.”

Amazon also pointed to its size and importance as an investor in Italy. The company said it was one of the largest foreign investors in the country, with more than 19,000 permanent employees. It warned that “unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy’s attractiveness as an investment destination.”

It is important to remember that nothing has been proven in court. The prosecutors have made allegations, and Amazon has denied them. A trial has not yet been requested, let alone held. Under Italian law, Amazon and the other suspects now have the chance to present their side before any decision is made.

VAT and customs duties, explained simply

For many shoppers, the words “VAT” and “customs duties” are familiar but confusing. Here is what they mean in plain language.

VAT — value-added tax — is a tax added to the price of most goods and services in Europe. When you buy something in a shop in Italy, part of what you pay is VAT, which the seller passes on to the government. When goods are imported from outside the EU, import VAT is charged at the border instead.

Customs duty is a separate tax on goods brought into a country from abroad. It is meant to protect local businesses from unfair competition and to raise money for the state. The amount depends on the type of product and where it comes from.

For years, small, cheap parcels from outside the EU could enter with little or no duty, because of a rule that exempted low-value goods. That loophole made it attractive for sellers to ship huge numbers of cheap items — clothes, phone accessories, household goods — directly to European customers from countries such as China.

European governments have been closing that loophole, and the Milan case is part of that wider crackdown: tax authorities across Europe are now looking much harder at how goods bought online actually enter the EU, and who is responsible when the tax is not paid.

A separate, earlier tax case

The customs case is not the only tax dispute between Amazon and the Italian authorities. In a separate case, Milan prosecutors asked in March 2026 for Amazon’s European unit and four of its managers to be sent to trial over alleged VAT evasion worth around €1.2 billion on online sales in Italy between 2019 and 2021.

That case is different from the one in the news today. It concerns an earlier period and a different set of allegations — that Amazon’s systems allowed tens of thousands of non-EU sellers, mostly from China, to sell goods in Italy without revealing their identities, which prosecutors said helped them avoid paying VAT.

It is also unusual because Amazon had already agreed in December to pay €527 million, including interest, to Italy’s Revenue Agency to settle that tax dispute — yet prosecutors pressed ahead with their criminal case anyway. A judge will decide at a preliminary hearing whether the defendants should face charges or whether the case should be dismissed.

The existence of two parallel cases shows how seriously Italian prosecutors are taking the question of tax on online sales — and how large the sums involved can be.

Why this case matters beyond Italy

The Milan investigation matters for several reasons.

First, it tests how much responsibility a giant online marketplace bears for the tax affairs of the sellers who use it. Amazon argues that the sellers are responsible for their own taxes. Prosecutors argue that when a platform stores the goods, moves them through its warehouses and handles the sale, it cannot simply look the other way. If the prosecutors win that argument, it could change how every large marketplace operates in Europe.

Second, the sums could grow. The €3.52 million in unpaid import VAT that prosecutors have quantified so far is only part of the picture. The customs duties allegedly avoided have not yet been calculated. And if investigators in other European countries find similar problems, the total could be much larger.

Finally, the case is a test of the relationship between Italy and one of its biggest foreign investors. Amazon employs more than 19,000 people in Italy on permanent contracts, and its warning about Italy’s “attractiveness as an investment destination” suggests the company will fight hard — in court and in public — to defend its position.

What happens next

Several things will happen in the coming weeks and months:

Amazon’s response. Amazon and the other suspects have the right to submit arguments, documents and evidence to the prosecutors. Amazon has already said it will “vigorously defend” itself.

The prosecutors’ decision. After hearing the suspects’ side, Milan prosecutors will decide whether to formally request a trial. That decision could take weeks or months.

The customs calculation. Customs authorities are still working out the total amount of duties allegedly avoided. When that figure is ready, the overall claim against Amazon could increase well beyond the €3.52 million in unpaid VAT identified so far.

Other countries. Judicial authorities in several European countries have already been briefed on the investigation through Eurojust. If similar patterns are found elsewhere, further cases could follow in other EU member states.

The separate March case. In the meantime, the earlier €1.2 billion VAT case continues through the Italian courts, with a preliminary hearing to decide whether it should go to trial.

For shoppers in Italy, there is no immediate change. Amazon’s website and deliveries are unaffected by the notice, and the company continues to operate normally while the legal process plays out.

What it means for shoppers and sellers

For ordinary shoppers, the case is a reminder that the very low prices on some online goods can come with a hidden cost. If the taxes on an imported product are never paid, the government loses revenue, and local shops that do pay their taxes are put at a disadvantage. In the long run, tighter enforcement could mean slightly higher prices on some cheap imported goods — but also a fairer market for businesses that follow the rules.

For the thousands of small sellers who use Amazon’s marketplace, the case is a warning too. Prosecutors have named scores of online-store operators as suspects alongside Amazon, accusing them of bypassing customs declarations and import taxes. Selling through a big platform does not remove a seller’s own responsibility to declare goods properly and pay the taxes due.

For Amazon and other marketplaces, the case raises a difficult question: how much checking should a platform do on the millions of products sold through it? Prosecutors say that when a platform stores and ships the goods, it cannot simply look the other way. The answer the Italian courts eventually give could shape the rules for online shopping across Europe.

Frequently asked questions

What is Amazon accused of in Italy?

Milan prosecutors allege that more than 1.5 million products from outside the EU, mostly made in China, were sold through Amazon’s marketplace and logistics network in Italy without the proper payment of import VAT and customs duties. They say Amazon failed to check sellers and customs paperwork properly, even though around 80% of the goods handled through its Italian logistics system came from China.

Has Amazon been found guilty?

No. These are allegations made by prosecutors. Amazon denies them and says it will “vigorously defend” itself. No trial has been requested yet — prosecutors must first decide whether to ask a judge to send the case to trial.

How much money is involved?

Prosecutors have so far quantified unpaid import VAT at more than €3.52 million (about $3.95 million). The customs duties allegedly avoided are still being calculated, so the total could rise. This is separate from an earlier case in which prosecutors allege around €1.2 billion in VAT evasion on sales between 2019 and 2021.

Who else is involved?

The notice was served on 70 suspects in total, including Amazon, two of its senior managers, and scores of online-store operators accused of importing mainly Chinese-made goods while bypassing customs declarations and import taxes.

Conclusion

The notice served on Amazon in Milan on Tuesday is a significant moment in a year-long investigation — but it is not the end of the story. Prosecutors have laid out serious allegations involving more than 1.5 million products and millions of euros in unpaid tax. Amazon has denied them and promised a vigorous defence.

What happens next depends on the prosecutors’ decision after Amazon presents its case, on the final calculation of the customs duties allegedly avoided, and on whether investigators in other European countries take up similar cases of their own.

For now, the case is a clear sign of how the rules of online shopping are changing in Europe. Governments want the tax paid, platforms are being asked to do more checking, and sellers who cut corners face the risk of prosecution. The outcome in Milan will be watched closely — in Italy, in Brussels, and in boardrooms far beyond.

Sources

• Reuters, ‘Italian prosecutors target Amazon over sale of Chinese goods’, 10 November 2026: https://www.reuters.com/legal/government/italian-prosecutors-target-amazon-over-sale-chinese-goods-2026-11-10/
• SRN News (Reuters syndication), ‘Italian prosecutors target Amazon over sale of Chinese goods’, 10 November 2026: https://srnnews.com/italian-prosecutors-target-amazon-over-sale-of-chinese-goods/
• Devdiscourse (Reuters syndication), ‘Italian prosecutors target Amazon over sale of Chinese goods’, 10 November 2026: https://www.devdiscourse.com/article/international/4004465-italian-prosecutors-target-amazon-over-sale-of-chinese-goods
• EL7.AI / MarketScreener, ‘Italian Prosecutors Notify Amazon of Potential Trial Over Tax Evasion Claims’, 10 November 2026: https://el7.ai/en/news/2026-11-10-italian-prosecutors-notify-amazon-of-potential-trial-over-tax-evasion-claims
• The Economic Times (Reuters), ‘Italian prosecutors seek trial for Amazon, four execs over alleged $1.4 billion tax evasion’, 12 March 2026 (separate earlier case): https://economictimes.indiatimes.com/tech/technology/italian-prosecutors-seek-trial-for-amazon-four-execs-over-alleged-1-4-billion-tax-evasion/articleshow/129513247.cms?from=mdr

This article is for general information and education only. It is not legal or financial advice.