Italy asks Meta, X and LinkedIn to pay VAT
A step may have consequences throughout the European Union.
Milan. Italy on Wednesday handed over to companies Meta. X and Linkedin formal request for payment Taxes from value added (VAT).
This unprecedented step towards US technology giants could have consequences throughout the European Union (EU). This was stated on Wednesday by four sources with direct knowledge of the matter. Informs Reuters.
A significant case
The fact that the court in Milan investigated Facebook and Instagram, the subsidiaries of Meta, as well as the social network x Elona Muska It is generally known for alleged tax evasion. But that the LinkedIn network, which belongs to Microsoft, was also included in the investigation in the Pilot VAT for the Technology Sector in Europe, has not yet been spoken.
Italy claims EUR 887.6 million from Meta, EUR 12.5 million from X and approximately EUR 140 million from LinkedIn.
The delivered tax assessment applies only to the years 2015 and 2016. However, the investigation was also subject to the following years until 2021-2022, depending on the case.
Although tax claims for these companies are relatively small, this is a significant case because it applies to the way social networks provide access to their services.
Meta disagrees
The Italian tax authorities claim that free registration of users on Platforms X, LinkedIn and Meta are provided in exchange for access to users’ data. They should therefore be classified as an exchange of services and thus subject to VAT.
The Meta platform said in a statement that « it certainly does not agree with the idea that providing users access to online platforms should be subject to VAT ». LinkedIn and X didn’t comment on it.
The results of the investigation in Italy could eventually be extended to the entire 27-member European Union, as VAT is a harmonized tax.
According to several experts, the Italian approach could influence almost all companies, from aircraft to supermarkets to publishers who connect access to free services on their site, with users accept cookie profile files.
