- Italy’s Tax Authority is demanding over EUR 1 billion in VAT from Meta, X, and LinkedIn.
- The dispute arises from the interpretation that exchanging personal data is a taxable service.
- Meta, X, and LinkedIn are challenging the legal basis of these VAT claims.
- The Tax Authority seeks EUR 12.5 million from X, EUR 887.6 million from Meta, and EUR 140 million from LinkedIn.
- Previous similar cases were settled, but tech companies are now appealing due to potential EU-wide policy impacts.
- Acceptance of this interpretation could affect various sectors, including airlines and supermarkets.
- The jurisdictional process could take up to 10 years, with an EU Commission advisory opinion expected in spring 2026.
- The outcome could redefine EU policy on digital barter transactions and influence global tax perspectives.
- The decision may impact profitability and business models across different industries, not just social media.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
