ALBAWABA – Meta, the American multinational technology company that owns and operates Facebook, Instagram, Threads, and WhatsApp, is facing a $938 million value-added tax (VAT) on estimated revenues generated in Italy between 2015 and 2021.
Meta to pay $938M VAT
A Milan prosecutor stated yesterday that Meta owes more than $938 million (887 million euros) value-added tax (VAT) on estimated revenues generated in Italy between 2015 and 2021.
According to the prosecutor, users can register on Facebook and Instagram for free; however, by accepting the terms and accessing data usage and personal information, they enter into a contractual agreement between both parties.
The prosecutor added that this contract justifies the imposition of taxes on Meta's case, even if no actual money or fees were deducted.
A Milan prosecutor stated yesterday that Meta owes more than $938 million (887 million euros) value-added tax (VAT) on estimated revenues generated in Italy between 2015 and 2021. (Shutterstock)
A spokesperson for Meta commented on the decision by saying: “We strongly disagree with the idea that providing access to online platforms to users should be charged with VAT.”
The company stated that it had cooperated with the European Union (EU) authorities and complied with its obligations and local laws. However, the Italian authorities continue to assert that Meta's services are not free of charge, as users exchange personal data and information upon signing up and registering to use the platform.
According to the authorities, Meta has 60 days to respond and pay the full VAT amount or refuse and initiate a legal dispute.
