Did you know Italy Brews Up New Tech Battle With Tax Demands to Meta, X, and LinkedIn

 

Italy just began a new tech battle with American web giants Meta, X, and LinkedIn, where it handed tax demands as part of the VAT claim. The move is major and could give rise to serious consequences across the entire EU region.

We already know from previous reports how Facebook and Instagram’s parent firm Meta, with X, was under scrutiny for tax fraud, seeing LinkedIn’s name added to the list is shocking. Many didn’t see the professional networking platform being caught up in the country’s VAT case for Europe that could shake up the tech world.

Italy says it needs to claim $961M from Meta, €12.5M from X, and nearly €140M from LinkedIn. The figures are linked for the whole period of scrutiny, which spans from 2015 to 2016 and 2021 to 2022. All of this is dependent on the case, but notices for tax assessment only cover a few years where the claims could expire.

The issue is very controversial and sensitive at this moment in time, as there are high tensions due to the trade war between the US and EU after the arrival of the Trump administration. We know that Musk and Italy’s PM have great relations, with plans for Starlink expansion to continue in Italy.

The case is major as it determines the manner social networks give access to services. We know more about how authorities in Italy continue to argue about user registrations related to X, Meta, and LinkedIn.

Meta failed to share more details on the matter and explained how it tried its best to fully cooperate with authorities in Italy. Meta has been very clear since the start about how no VAT could be collected for providing data to users online. X and LinkedIn also didn’t wish to comment on the case.  

The case might get extended to the EU, which features 27 different countries, and that means giving rise to a new business model for the tech world. So this approach taken up by Italian authorities could have drastic consequences for many to access free services on different sites. Now only time can tell what the final outcome of the case is as the stakes are high, both in terms of financial and political interests.