Reuters: ‘Meta, X, and LinkedIn Appeal Unprecedented VAT Claim by Italy’

Reuters:

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.

The issue is especially sensitive given wider trade tensions between the EU and the administration of U.S. President Donald Trump. Italy is claiming 887.6 million euros ($1.03 billion) from Meta, 12.5 million euros from X and around 140 million euros from LinkedIn. [...]

According to several experts consulted by Reuters, the Italian approach could affect almost all companies, from airlines to supermarkets to publishers, who link access to free services on their sites to users’ acceptance of profiling cookies.

Charging a VAT on free account signups does not strike me as a good idea.

★ Tuesday, 22 July 2025