Amazon is involved in a new financial scandal: Prosecutors in Milan accuse the American company of tax evasion amounting to 1.2 billion euros

Prosecutors in Milan have requested the trial of Amazon EU Sarl and four managers, including director Barbara Scarafia, for VAT evasion estimated at 1.2 billion euros, on online sales in Italy between 2019 and 2021. According to the indictment, Amazon's algorithm and operational model allowed tens of thousands of non-EU sellers, especially from China, to sell products without declaring their identity, thus avoiding VAT payment. Although Amazon reached an agreement with the Italian Tax Agency, paying 527 million euros, the prosecution decided to continue the criminal investigation, which is unprecedented in Italy. If the charges are confirmed, it could affect Amazon's business model in Europe. Additionally, the European Public Prosecutor's Office is investigating possible similar offenses committed by Amazon during the period 2021-2024. The Italian Ministry of Economy has been designated as a harmed party in this case, and investigations continue on multiple fronts.