Italy has handed tax demands to Meta, X and LinkedIn in an unprecedented VAT claim against the U.S. tech giants that could have repercussions across the European Union, four sources with direct knowledge of the matter said on Wednesday.
Italy is actively pursuing tax payments from major tech companies Meta, X (formerly Twitter), and LinkedIn, marking a significant move in the ongoing debate over digital taxation. The Italian Revenue Agency has issued notices to these companies, asserting that they owe taxes on the income generated from Italian users, despite the firms being headquartered abroad. This case could set a precedent for how digital services are taxed globally, especially as countries grapple with how to tax digital giants that operate across borders but often declare profits in low-tax jurisdictions. The tax claims are based on the premise that these platforms derive substantial economic value from Italian users, and thus should contribute to the Italian tax base. This initiative reflects Italy's broader strategy to ensure that multinational tech companies pay their fair share of taxes, aligning with similar efforts seen in other European countries.
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