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Digital economy: Netflix Italian Dispute – the first audit that can lead to wider inspections in the UK and EU?

Expansion of Netflix in Europe and origin of the audit

Netflix started in 2012 to distribute pay-per-view movies and TV series via internet in the UK and in other EU Member States (Ireland and Scandinavia).

The American Company opened to Dutch market in 2013, followed in 2014 by operating in Germany, France, Belgium, Austria and Luxembourg.

In Italy the Company arrived in October 2015.

In 2019 Milan Public Prosecutor’s Office opened an investigation for omitted tax returns against Netflix since, despite the fact of earning millions of EUR, the American Company was not declaring any revenue to the Italian Tax Authorities (and, reading between the lines of the official press release dated May 20, 2022, it seems they were not even paying Italian VAT – to be confirmed).

Source Luca Clivati

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