Meta Platforms, the parent company of Instagram and Facebook, among others, still owes Italy more than 887 million euros in VAT. A prosecutor in Milan stated this on Monday. The amount concerns the VAT on the estimated turnover that the company recorded in the country between 2015 and 2021.
The issue is striking as users of the social media platforms can create an account for free. However, they must give permission to grant the platforms access to their user data and personal information. According to the prosecutor, in that case the user and the platform enter into a contract with each other that is commercial in nature. So imposing taxes is justified, the prosecutor argues.
According to him, Meta failed to declare a total of 4 billion euros in income, with which the company evaded VAT. On this basis, the public prosecutor arrives at an amount owed of 887.6 million euros. A judge must now decide whether the case will continue.
Meta told the AFP news agency that it disagreed with “the idea that providing users with access to online platforms should be subject to VAT”. The company states that it takes its payment obligations seriously. “We pay all required taxes in every country we operate in.”