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Meta, X and LinkedIn Appeal Italy’s Unprecedented VAT Assessment

Italy will seek a nonbinding advisory opinion from the European Commission’s VAT Committee before deciding whether to press ahead with a decade-long judicial trial.

EU flag and Meta logo are seen in this illustration taken, May 22, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • Meta, X and LinkedIn lodged appeals this month after settlement talks collapsed, triggering Italy’s first full judicial VAT dispute with tech firms.
  • Italian tax authorities contend that exchanging personal data for free user registrations constitutes a taxable supply under EU VAT rules.
  • Rome plans to submit detailed questions to the EU VAT Committee by early November and expects an advisory opinion in spring 2026.
  • The Italian Revenue Agency is claiming €887.6 million from Meta, €12.5 million from X and approximately €140 million from LinkedIn.
  • Experts warn that an EU endorsement of Italy’s approach could extend VAT liabilities to airlines, supermarkets, publishers and other sectors offering free services in exchange for user data.