Tech Titans vs. Italian Tax Titans: An EU VAT Showdown
U.S. tech giants Meta, X, and LinkedIn are challenging Italy’s groundbreaking VAT claim, which could reshape EU tax policy. The case, involving claims of over €1 billion combined, questions whether user data access should be taxed. Italy seeks EU guidance, highlighting tensions with U.S. companies.
U.S. tech powerhouses Meta, X, and LinkedIn have filed an appeal against an unprecedented VAT claim lodged by Italy. Sources have revealed that this challenge, which could impact tax policy across the European Union, is set to shape how social networks are taxed.
This case marks the first instance of Italy launching a full judicial tax trial instead of reaching a settlement. Italian tax authorities claim that free user registrations on platforms like X should be considered taxable transactions, as they involve the exchange of personal data. This issue gains additional complexity against a backdrop of trade tensions between the EU and the U.S.
Italy is demanding substantial sums: €887.6 million from Meta, €12.5 million from X, and around €140 million from LinkedIn. The tech giants submitted their appeals after the deadline for a response to Italy's Revenue Agency passed. Italy is now looking to the European Commission for advisory input, aiming to receive comments by spring 2026.
(With inputs from agencies.)
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