Unpaid VAT: A firm no to Italy from Meta, X, and LinkedIn

For the first time, Italy has failed to reach a tax agreement with Big Tech, after filing lawsuits for non-payment of taxes in our country. The companies in question are Meta, X, and LinkedIn , which are being investigated by the Guardia di Finanza and the Revenue Agency for unpaid VAT . Developments in what could evolve into a full-blown multi-year lawsuit have the potential to shape European policy on the issue.

The news was reported exclusively by Reuters. It cites four sources believed to be familiar with the situation, but for obvious reasons, they remained anonymous. As of this writing and publication, there have been no confirmations or denials from the companies involved or from the institutions. Meta's only comment, which is reproduced below in a translated form.

We have fully cooperated with the authorities regarding our obligations under EU and local law. We strongly disagree with the idea that providing access to online platforms to users should be subject to VAT.

The lack of agreement is thought to be due to one aspect in particular. Italy would like to treat every free registration on social networks as a taxable transaction, since the exchanged commodity—the one on which Meta, X, and LinkedIn generate profits—would be the users' data. This issue is more relevant than ever, now that the debate over Facebook and Instagram's premium subscriptions has resurfaced.

Since these are three large American companies , the firm no given to the Italian authorities could spark new tensions between our country and the United States. It should be remembered that Europe and the US have been grappling with difficult negotiations regarding tariffs and taxation for months.

Italy is asking for over a billion euros

Italy, which is now turning to the European Commission for an advisory opinion, is seeking a total of approximately €1 billion from Big Tech. Specifically, Meta receives €887.6 million , X €12.5 million, and LinkedIn €140 million. It's worth remembering that the latter platform is controlled by Microsoft. All three have filed appeals in recent days, after the deadline for doing so has expired.

As anticipated, the evolution of the case could set a precedent and define the ways in which our country and the rest of Europe will require American companies to pay taxes for activities carried out in their respective territories, even when these services are offered free of charge .