Italy's VAT Challenge: Unprecedented Tax Demands on U.S. Tech Giants

Italy has issued final tax demands to Meta, X, and LinkedIn, marking a significant VAT claim against these U.S. tech companies. This move could have broad implications across the EU. Not only Meta and X but also LinkedIn are involved in this groundbreaking tax investigation within Europe's tech sector.

Italy has issued official tax demands to digital titans Meta, X, and LinkedIn, formalizing an unprecedented VAT claim against these major U.S.-based companies, according to sources familiar with the situation.

While Meta—parent to Facebook and Instagram—and Elon Musk's social network, X, were known to be under investigation for potential tax fraud, it has now emerged that Microsoft's LinkedIn is also implicated in this pioneering case concerning the tech industry within Europe.

This action could establish significant precedents for VAT imposition on global digital services across the European Union, heralding potential widespread repercussions for the tech sector.

(With inputs from agencies.)