Italy Targets Meta, X, and LinkedIn in Landmark VAT Tax Case

Italy has issued tax demands to Meta, X, and LinkedIn in a historic Value-Added Tax (VAT) claim against major U.S. tech giants.

Previously, reports confirmed that Meta—the parent company of Facebook and Instagram—and Elon Musk’s social platform X were under investigation for alleged tax fraud. However, it has now emerged that Microsoft’s LinkedIn is also involved in Italy’s pioneering VAT case targeting the digital sector in Europe.

The Italian authorities are pursuing tax payments of 887.6 million euros ($961 million) from Meta, 12.5 million euros from X, and approximately 140 million euros from LinkedIn. The investigation covers transactions spanning from 2015-2016 to 2021-2022, though the current tax notice focuses on 2015 and 2016 due to the expiration of claims for those years.

This high-profile case comes at a time of heightened trade tensions between the European Union and the United States. 

Key Takeaways:

• Italy demands nearly €1 billion in VAT from Meta, X, and LinkedIn.

• The case could influence digital taxation policies across the European Union.

• Investigations span multiple years, but the immediate focus is on 2015-2016.

• Trade relations between the EU and the U.S. add to the case’s significance.

This case underscores the increasing scrutiny on tech giants’ tax practices and may pave the way for broader regulatory changes in Europe’s digital taxation framework.

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