By Emilio Parodi
Milan (Reuters) – Italy claims 12.5 million euros ($ 13 million) from Elon Musk X's social network following a tax probe running parallel to one into Meta, said four sources with direct information from the matter , says the latest move in a possible test case in a possible test case for the technology sector in Europe.
Although the value -added tax claim is a trivial amount for X, a company that generated $ 3.4 billion in revenue in 2023, the case is significant as it depends on the way social networks provide access to their services.
Italian tax authorities argue that consumer registrations with X, and Meta platforms such as Facebook and Instagram, could be considered taxable transactions as they suggest an exchange of membership account in exchange for user personal data.
If a judicial review conducts this interpretation, it would mean a change in the technology industry's business model, extended to a 27 -country European Union as VAT is a tax reconciled with the EU.
X did not immediately respond to a request for attention.
The issue is particularly sensitive as US President Donald Trump has raised the issue of imposing tariffs on imports from countries such as Italy raising digital service taxes on US technology companies.
Musk also has a good working relationship with Italy Giorgia Meloni Prime Minister and is keen to expand his Starlink communications business in the country.
Italy extended its domestic tax on digital services to small and medium -sized enterprises (SMEs) in November to try to overcome US objections that the levy was discriminatory.
Tax examination
Milan's Guardia Di Finanza Police (GDF) closed a tax audit last April challenging X over not paying 12.5 million euros at VAT for the years 2016 to 2022, the four sources told Reuters. Musk completed his possession of the previously named Twitter platform in October 2022.
In January, the Italian Revenue Agency sent a formal list of its own observations relating to the 2016 Tax Year, which any action ends this year, fully approving GDF investigation conclusions, added the sources.
As has taken place in such previous cases, Milan's prosecutors opened a criminal investigation into an X -like X -like into Meta who completed an initial step in December.
Sources said Meta and X have until the end of March or early April to respond to tax authority observations, after which they either receive its opinion and pay an agreed amount or start a tax dispute Full judicial.
Italy has pursued tax technology companies. Last week Google agreed to pay 326 million euros to settle a tax claim relating to the period 2015 to 2019.