Amazon to Pay €580M+ to End Italian Tax Dispute

Amazon to Pay €580M+ to End Italian Tax Dispute

Amazon has reached an agreement with Italian tax authorities to pay more than €580 million (about $582 million) to settle a significant tax dispute with the Italian government. The arrangement was confirmed by sources familiar with the matter and reported by major news outlets on December 10, 2025.

Under the agreement, Amazon will pay €510 million directly to Italy’s Revenue Agency to resolve disputes related to alleged tax obligations. While the company confirmed the settlement, it did not publicly disclose specific terms and emphasized its intent to defend itself in related criminal proceedings.

The settlement arises from investigations by Italian financial police and the tax collection agency into whether Amazon met its tax obligations on income and VAT-related liabilities in Italy. Italian prosecutors in Milan have expressed disagreement with the settlement, indicating that they plan to continue a separate criminal investigation into suspected tax practices, potentially involving up to €1.2 billion in contested tax charges for more recent years.

In addition to this settlement, Amazon’s local units, including Amazon Logistics and Amazon Italia Transport, have agreed to additional payments in recent weeks related to other fiscal and compliance inquiries, bringing total Italian tax payments linked to these matters to an even larger amount.

Amazon has publicly criticized the Italian regulatory and legal environment, saying that unpredictable rules and protracted proceedings can negatively affect investment appeal. The company stated it will “forcefully defend” its position regarding any criminal case it deems unfounded.

This tax settlement is one of several high-profile fiscal disputes involving multinational tech companies in Italy, reflecting broader international efforts to ensure that global digital businesses pay taxes in countries where they generate significant revenue.

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