- Italy claims that free access to platforms like Meta in exchange for user data constitutes a taxable barter transaction subject to VAT.
- The Italian Revenue Agency is seeking €887.6 million from Meta, arguing user data has measurable economic value.
- The EU VAT Committee disagreed, stating VAT should only apply when there is a clear legal or personal connection, to be assessed case-by-case.
- Meta opposes Italy’s view, asserting user data is not traditional payment and VAT should not apply.
- The outcome could reshape VAT policy for digital services across the EU, impacting how non-monetary exchanges are taxed.
Source: meridianglobalservices.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.
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