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Italy has issued tax demands to Meta, X (formerly Twitter), and LinkedIn, claiming that their business models should be subject to Value-Added Tax (VAT)—a move that could set a precedent across the European Union. The Italian Revenue Agency is seeking €887.6 million from Meta, €12.5 million from X, and €140 million from LinkedIn, arguing that users providing personal data in exchange for access to these platforms constitutes a taxable transaction.
This case, covering the years 2015-2016 to 2021-2022, is the first of its kind in Europe and could have far-reaching consequences for digital platforms, airlines, supermarkets, and other companies offering free services tied to user data collection. The companies now have 60 days to appeal, with the possibility of litigation that could last up to a decade.
Meta has stated that it “strongly disagrees” with the idea that platform access should be taxed, while LinkedIn declined to comment, and X has yet to respond. The case comes amid ongoing EU-U.S. trade tensions, with potential political and economic ramifications.
Italy has previously pursued tech giants over tax compliance, with Google agreeing to a €326 million settlement in February. However, this case marks a shift, as no settlement has been reached—raising the stakes for both the companies and European tax policy. If Italy’s argument is upheld, the ruling could force a major rethink of the digital economy’s tax obligations across the EU.
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