- Italian authorities are investigating Twitter, similar to a recent investigation of Meta, for potential unpaid Value Added Tax (VAT).
- The investigation focuses on the years 2016 to 2022.
- The accusation is that Twitter failed to declare VAT on services provided through its platform.
- The investigation alleges that user data provided during free registration constitutes a non-monetary payment, triggering VAT obligations.
- The argument is that data collection and profiling allows companies to profit from advertising and marketing, creating a “barter” situation.
- The Italian tax agency believes that even free services can be subject to VAT if they involve a non-monetary exchange.
- The Italian Supreme Court has ruled that free transfers are only exempt from VAT if there is no counter-performance.
Source: eutekne.info
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.
