VAT on Free Social Media Access Still Uncertain Amid Ongoing EU Discussions

• No VAT is currently charged on the provision of personal data for ‘free’ access to social media, based on a guideline from the European VAT Committee.
• VAT may only be considered if there is a direct link between the data provided and the service, and if the taxable amount can be determined, which is currently unclear.
• Italy argues that when digital services depend on the quantity and quality of user data, the guideline does not apply and a direct link exists.
• The European VAT Committee is still discussing this issue, and the Dutch State Secretary of Finance will not speculate on the outcome.
• If it is determined that social media providers owe VAT, the Dutch tax authorities will investigate the appropriate tax base.

Source: taxlive.nl

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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