Milan prosecutors are investigating Facebook parent company Meta Platforms Inc. for alleged unpaid VAT taxes for a total of about €870 million ($927 million), according to people familiar with the matter.
Meta denies doing anything wrong. We take our tax liability seriously and pay all taxes we owe in all countries. But Meta also says it “strongly disagrees that VAT should be charged on digital services”.
The two sources said that investigators believe that free membership on Meta platforms comes in return for access to user data and should be classified as an exchange of services, therefore subject to VAT sales tax.
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