- Major VAT Demands Issued: The Italian Revenue Agency has initiated a significant tax dispute with major US tech companies, issuing VAT demands totaling approximately one billion EUR—specifically, EUR 900 million from Meta, EUR 140 million from LinkedIn, and EUR 12.5 million from X (formerly Twitter)—based on claims that their digital services are taxable under VAT law.
- Taxable Nature of Data Exchange: The Agency argues that the exchange of user data for e-services provided by these platforms should not be considered tax-exempt. Instead, it contends that these transactions should be subject to a 22% VAT, citing provisions in the VAT Law that classify such exchanges of intangible assets as taxable.
- Potential Implications and Next Steps: The outcome of this dispute could set a significant precedent for the taxation of intangible asset exchanges and may influence digital privacy regulations, including potential revisions to GDPR. Meta, X, and LinkedIn must decide whether to contest the claims in court or seek a settlement, amid a challenging EU-US relationship regarding digital taxation and tariffs.
Source 1stopvat
