Amazon Under Investigation in Italy Over Alleged Tax Evasion and ‘Trojan Horse’ Imports

Amazon is facing intense scrutiny in Italy over suspected tax evasion and customs violations, with authorities describing the e-commerce giant’s activities as “Trojan horse” operations. According to a Reuters report citing three sources, Amazon allegedly imported Chinese goods into Italy without paying the required taxes and duties.

On 24 November, Italian police raided two Amazon facilities as part of the investigation. The targeted sites included a logistics hub in Cividate al Piano, Bergamo province, and Amazon’s Italian headquarters in central Milan. Officers from the Guardia di Finanza and the customs agency also identified the manager responsible for overseeing goods movement within Italy.

Authorities seized around 5,000 products from the logistics hub, including air fryers, phone covers, pens, small scissors, and toys, while IT equipment was taken from the Milan headquarters.

Amazon declined to comment to Reuters but stated that it “is committed to complying with all applicable tax laws and cooperates fully with all relevant authorities.”

What Does “Trojan Horse” Mean?

Court documents cited in the report allege that Amazon acted as a “Trojan horse” by importing Chinese products into Italy without paying sales taxes or customs duties, potentially costing the state hundreds of millions of euros. Sources suggested that other European Union countries might also launch investigations given the scale of the allegations.

The inquiry stems from an earlier €1.2 billion tax evasion case. Milan prosecutors, collaborating with the Monza branch of the Guardia di Finanza, suspect that goods imported from China into Europe were routed into Italy through undisclosed channels before being sold via Amazon’s marketplace. Authorities allege that this constitutes smuggling and breaches EU customs regulations.

Sources indicate that the total number of products involved could reach 500,000, with multiple Italian companies—many suspected fronts for Chinese entities—participating in the scheme. The immediate impact of the raids on Amazon’s Italian operations remains unclear.

Possible EU-Wide Investigation

Officials expect the investigation could expand to the entire 27-nation EU. In July, Milan prosecutors presented their inquiry to counterparts from Germany, France, the Netherlands, Poland, Spain, Belgium, Sweden, and Ireland at the EU criminal justice cooperation agency Eurojust in The Hague.

The case adds a new layer to ongoing disputes over customs duties and sales taxes that have strained EU-US relations, though it is not yet clear how authorities in Washington or Brussels will react.

Previously, Milan prosecutors probed Amazon’s Luxembourg-based European unit and three managers over alleged tax fraud on online sales in Italy from 2019 to 2021. Italy’s tax agency has proposed a settlement, which Amazon must respond to by December. Prosecutors claim that Amazon’s algorithm allows goods from mostly Chinese non-EU sellers to be sold in Italy without supplier identification, helping avoid VAT. Under Italian law, platforms are jointly liable for unpaid taxes by non-EU sellers.

Separately, the European Public Prosecutor’s Office has launched its own investigation into Amazon’s accounts from 2021 to 2024, following new EU rules enforcing stricter sales tax obligations on marketplaces.