Amazon Faces Italian Tax Probe

Italian tax police searched Amazon’s (AMZN) Milan headquarters Thursday in a new tax evasion investigation, adding to mounting regulatory pressure on the e-commerce giant.

The probe marks the latest in a series of Italian tax investigations targeting Amazon, potentially exposing the company to additional financial penalties and reputational damage in a key European market.

Key Takeaways

Italian police searched Amazon Milan offices and manager homes
KPMG auditing firm offices also targeted in investigation
Multiple ongoing Italian tax probes threaten Amazon operations

Search Details and Scope

Italy’s Guardia di Finanza tax police conducted searches at Amazon’s Milan headquarters as part of a new tax evasion investigation ¹. The operation extended beyond corporate offices to include searches of seven Amazon managers’ homes and KPMG auditing firm offices ².

The latest probe represents a separate investigation from previous Italian tax cases involving Amazon. Earlier probes have targeted alleged customs fraud and VAT evasion schemes ³.

Pattern of Italian Scrutiny

Amazon has faced intensifying Italian regulatory pressure over the past year. In November 2025, police raided two Amazon sites as part of an investigation into alleged customs and tax fraud involving Chinese goods smuggling ⁴.

Italian prosecutors previously investigated Amazon for alleged tax evasion amounting to 1.2 billion (1.26 billion) in February 2025 ⁵. Separate investigations have targeted courier companies allegedly providing false invoices benefiting Amazon and other logistics giants ⁶.

Regulatory Risk Assessment

The escalating Italian investigations pose material risks to Amazon’s European operations and profitability. Tax authorities have increasingly focused on multinational technology companies’ profit-shifting strategies and transfer pricing arrangements.

Amazon’s involvement spans multiple investigation streams, including VAT compliance, customs duties, and alleged fraudulent invoice schemes. The company’s role as a marketplace platform has drawn particular scrutiny regarding its responsibility for third-party seller compliance ⁷.

Market Context

Amazon shares showed minimal reaction to the news, reflecting investor familiarity with ongoing European regulatory challenges. The company has previously settled significant tax disputes with European authorities, including a 250 million agreement with Luxembourg tax authorities in 2017.

Other major technology companies face similar scrutiny across Europe, with regulators increasingly challenging traditional tax optimization strategies. The broader trend suggests sustained pressure on Big Tech’s European profit margins.

Company Response

Amazon has not immediately responded to requests for comment regarding the latest investigation. The company typically maintains that it complies with all applicable tax laws and cooperates fully with regulatory authorities.

The involvement of KPMG in the searches suggests investigators are examining professional advisory services related to Amazon’s tax structure and compliance procedures ⁸.

Not investment advice. For informational purposes only.