- Italian authorities are investigating Twitter International Unlimited Company for alleged unpaid VAT from 2016 to 2022.
- The investigation follows a similar case against Meta, which concluded recently.
- The amount of unpaid VAT alleged against Twitter is significantly lower than that alleged against Meta.
- The accusation is that the companies receive non-monetary compensation for their services in the form of user data.
- This data is used for advertising and marketing purposes, generating revenue for the companies.
- The Italian tax authorities argue that this constitutes a barter transaction, subject to VAT.
- The companies argue that their services are free and not subject to VAT.
- The Italian tax authorities and the courts have previously ruled that free services can be subject to VAT if they are part of a barter transaction.
- The companies’ defense is that the services are not subject to VAT because there is no monetary compensation.
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.
