In an interesting development, Italy has officially sent tax demands to Meta (META), X (formerly Twitter), and LinkedIn in a major VAT (value-added tax) case that could have wide effects across the European Union. According to four sources who spoke to Reuters, Italy is asking for €887.6 million from Meta, €12.5 million from X, and around €140 million from LinkedIn. While it was already known that Meta and X were under investigation, this is the first time Microsoft-owned LinkedIn (MSFT) has been named in the case.
The tax demands cover different years between 2015 and 2022, but the current notices focus only on 2015 and 2016, which are the years that are close to the legal deadline for filing claims. Italian tax officials argue that when users create accounts on platforms like Meta, X, or LinkedIn, they’re trading their personal data for access to services. They believe this exchange should count as a taxable transaction under VAT laws, which challenges how tech companies have operated for years.
Unsurprisingly, Meta responded by saying it disagrees with the idea that giving users free access to platforms should be taxed and added that it has fully cooperated with authorities. Since VAT rules are the same across all EU countries, experts say this case could spread beyond Italy. And if it does, it might force many companies—from airlines to supermarkets—to rethink how they offer free services in exchange for customer data.
Is META Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 44 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $763.71 per share implies 24.9% upside potential.
