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

Italy plans to ask the European Commission’s VAT Committee for a non-binding opinion by early November to clarify whether free user data exchanges should be taxed.

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 filed appeals with Italy’s first-instance tax court after the mid-July deadline on assessments issued by the Italian Revenue Agency.
  • Italy is seeking €887.6 million from Meta, €12.5 million from X and about €140 million from LinkedIn for value-added tax on free user registrations.
  • Italian authorities contend that exchanging personal data for access to social networks constitutes a taxable transaction under EU VAT rules.
  • Meta says it cooperated fully but strongly disagrees that providing access to its platforms should be subject to VAT; X and LinkedIn have declined to comment.
  • Italy will submit detailed questions to the EU Commission’s VAT Committee by early November and expects a formal opinion by spring 2026 that could shape EU-wide digital tax policy.