Italian prosecutors have told Amazon's European unit and two senior managers that they could face trial over the sale of Chinese goods without proper payment of import value-added tax and customs duties, according to a document seen by Reuters.

The notice concluding the Italian investigation, a procedural step that usually precedes a request for trial, was served on Luxembourg-based Amazon EU S.a r.l. under Italy's corporate liability law, as well as on the two managers.

Milan prosecutors allege that more than 1.5 million products from outside the European Union were sold through Amazon's marketplace and logistics network in Italy without the proper payment of import VAT and customs duties.

Unpaid tax put at more than €3.52m

Prosecutors have so far quantified unpaid import VAT at more than €3.52 million, about $3.95 million, while customs authorities are still calculating the total amount of duties allegedly evaded, meaning the overall claim could increase once that assessment is completed.

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

The development is the latest step in an investigation into how goods from outside the EU are sold through large online marketplaces, and it raises fresh questions about who bears responsibility for import taxes when third-party sellers use a platform's logistics network.

What happens next

The notice does not itself mean a trial will take place. Prosecutors must now decide whether to ask a judge to send the case to trial, and a judge would then rule on whether the evidence justifies proceedings. The allegations have not been tested in court.

Amazon's European unit is based in Luxembourg, and the case is being pursued under Italian corporate liability rules, which allow a company to be held responsible for offences committed in its interest or to its advantage.

The case comes as European regulators and tax authorities step up scrutiny of online marketplaces, where goods imported from outside the bloc can reach consumers through complex supply chains involving sellers, platforms and logistics providers in several countries. Under EU rules, import VAT is normally due when goods enter the bloc, and platforms that store and ship goods on behalf of sellers can face questions about their role in that chain.

Italy is one of Amazon's largest European markets, and the company operates a network of fulfilment and delivery centres across the country, including its MXP5 facility at Piacenza.