Meta Platforms, the parent company of Instagram and Facebook, owes the Italian Treasury over €887 million in VAT on revenue it generated from 2015 to 2021, a public prosecutor in Milan announced on Monday.
While users can create accounts on the social media platforms for free, they must allow the platforms access to their user data and personal information. The Milan prosecutor argues that this creates a commercial contract between the user and the platform, justifying the imposition of taxes.
According to the prosecutor, Meta failed to declare total income to the sum of €4 billion, resulting in VAT evasion. Based on this, he calculates Meta's VAT debt at €887.6 million.
A judge will now decide whether the case will proceed.
Meta disagrees with the idea that providing users with access to online platforms should be subject to VAT, the company told French news agency AFP.
It said it takes its obligations seriously, stating: “We pay all required taxes in every country where we operate.”
