Jessica Fino 18 Dec 2017 10:51am

Amazon settles tax dispute in Italy

Amazon has reached a deal with the Italian tax authorities by agreeing to pay €100m (£88m) back in taxes

The tax authority L’Agenzia delle Entrate said on Friday the deal covered outstanding tax related to the period between 2011 and 2015.

It said the “path had been resumed” for deals to ensure “the correct taxation in Italy for activities related to our country”.

Earlier this year, the Italian tax police suggested Amazon owed the country between €120m and €130m in taxes.

Amazon said in a statement, “We have reached an agreement with the tax authorities on historical matters and remain focused on providing a great shopping experience for our customers in Italy, where we have invested more than €800m since 2010 and created over 3,000 jobs.

“In May 2015, to ensure we had the best business structure to serve our customers going forward, we established a local country branch of Amazon EU Sarl in Italy, with all retail revenues, expenses, profits and taxes due now accounted for in Italy.”

In October, Amazon agreed to pay €250m in back taxes to Luxembourg, by order of the European Commission.

It followed a three-year investigation into whether a tax deal between the online retailer and Luxembourg amounted to state aid.