Meta, X and LinkedIn Fight Italy’s €1 Billion VAT Case

Meta Platforms, Elon Musk’s X and Microsoft-owned LinkedIn have each lodged appeals in an Italian tax court challenging value-added-tax assessments that together total about €1.04 billion, according to people familiar with the filings. Italy’s Revenue Agency contends that free user registrations on the three social-media platforms constitute taxable transactions because consumers exchange personal data for access. The agency is seeking €887.6 million from Meta, €12.5 million from X and roughly €140 million from LinkedIn. The dispute marks the first time Italy has pursued a full judicial trial rather than a negotiated settlement with large technology companies. Rome now plans to ask the European Commission’s VAT Committee for an advisory opinion, a process that could influence how the 27-nation bloc taxes digital services that rely on data-for-access models. A ruling in Italy, or guidance from Brussels, could extend beyond social media to any company that links free services to user profiling, tax experts say. The multi-tier Italian court process typically lasts up to a decade, and the Commission’s opinion—expected no earlier than spring 2026—would be non-binding but politically significant.