Amazon (AMZN) has settled a tax dispute with Italian authorities and agreed to pay €511M ($582M) but will continue to fight criminal charges brought against the company by Milan prosecutors.
An additional €212M was paid last week by Amazon Logistics and Amazon Italia Transport to settle a separate tax dispute, bringing the total to €723M.
Milanese authorities criticized the settlement with the Italian Revenue Agency (Agenzia della Entrtate), insisting they will continue their investigation into the retail giant for tax evasion as well as customs and tax fraud involving Chinese imports. The investigation alleges Amazon (AMZN) evaded taxes from 2019 to 2024 and owes in excess of €1.2B by not declaring VAT on the “distance sales” of millions of products imported from China.
Amazon (AMZN) however, claims the allegations are “unfounded” and will “forcefully defend” its position.
“We are among the top 50 taxpayers in Italy and one of the largest foreign investors in the country. Unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy’s attractiveness as an investment destination,” the company said in a statement.
Amazon (AMZN) conducts a significant amount of business in Italy with revenue in excess of $10B, and is an important platform for small and medium enterprises ((SMEs)) to use for domestic and international sales, furthering the “Made in Italy” brand across the globe.