A French administrative court has ordered the state to repay approximately €24 million to Amazon, ruling that certain services provided by the e-commerce giant fall outside the scope of the country's digital services tax. The Tribunal Administratif de Cergy-Pontoise delivered its judgment on Thursday, September 25, 2025, siding with Amazon's argument that its Prime and Fulfilled by Amazon programs should not be subject to the tax commonly known as the Gafa tax.

The dispute centers on Amazon's December 2021 claim seeking partial reimbursement of the €23,874,646 it paid under the digital services tax in 2019. The company contended that specific services offered to users should be excluded from the tax's application. The court agreed with Amazon's position, finding that the Prime and Fulfilled by Amazon programs are optional, fee-based services with distinct objectives separate from Amazon's core business of operating a digital marketplace.

The court's decision challenges the French tax administration's interpretation of the Gafa tax legislation, which was implemented in 2019 to tax large digital companies—primarily U.S.-based firms—on revenue generated in France. The 3% tax applies to companies like Amazon, Google, Facebook, and Apple that derive significant French revenue while being taxed on profits in their home countries. The tax generated approximately €750 million in revenue for France in 2024.

Amazon welcomed the court's ruling, stating that it confirms the tax administration's interpretation went beyond the framework established by existing legislation. The company also emphasized its direct contribution to financing public services in France. In addition to the tax repayment, the court ordered the French state to pay €5,000 in legal costs to Amazon. The case highlights ongoing tensions between European governments seeking to tax digital giants and multinational corporations challenging the scope and application of such taxes.