Italy has officially handed tax demands to Meta, X, and LinkedIn in the final step of an unprecedented VAT claim that could have wide-reaching implications across the European Union. Four sources with direct knowledge of the matter confirmed the news on Wednesday.
The tax claims come as part of Italy’s pilot VAT case targeting U.S. tech giants operating in Europe. While it was already reported that Meta, the parent company of Facebook and Instagram, and Elon Musk’s social network X were under investigation for alleged tax fraud, it had not previously been disclosed that Microsoft’s LinkedIn was also included in the case.
The move highlights growing scrutiny of major tech firms operating in Europe and their tax practices, with Italy leading the charge in ensuring these companies meet local VAT obligations. This action could set a precedent for other EU countries to follow, potentially impacting the operations of these web giants across the continent.