Meta, LinkedIn, X appeal Italy’s VAT claim, Reuters reports

Meta (META), Microsoft’s (MSFT) LinkedIn, and X, formerly Twitter, have filed an appeal against an “unprecedented” EUR 1.04B VAT claim by Italy, which is seeking EUR 887.6M from Meta, EUR 12.5M from X, and about EUR 140M from LinkedIn, Reuters’ Emilio Parodi reports. According to sources, the case went beyond agreeing on a settlement figure and sought to establish a broader approach focused on how social networks provide access to their services, as Italian tax authorities argue that free user registrations with X, LinkedIn and Meta platforms should be seen as taxable transactions as they imply the exchange of a membership account in return for a user’s personal data. In a statement to Reuters, Meta said that it had cooperated “fully with the authorities on our obligations under EU and local law” and that it “strongly disagrees with the idea that providing access to online platforms to users should be subject to VAT.”