Italian tax authorities have demanded that the social network X, owned by Elon Musk, pay a fine of €12.5 million.
According to Reuters, citing four informed sources, Italy’s tax police completed an audit in April 2024 and found that X had outstanding VAT liabilities for the period from 2016 to 2022.
In January 2025, the Italian Revenue Agency sent X its observations regarding tax obligations for 2016, fully supporting the findings of the Financial Guard. The company has until the end of March or early April to either pay the amount or challenge the decision in court.
Italian authorities have also made similar claims against Meta, the owner of Facebook and Instagram. Two Reuters sources noted that X and Meta are no longer negotiating with tax authorities, as the issue goes beyond the amount of payments and involves a broader revision of their business model in Italy.
Italian tax officials argue that user registration on social networks could be considered a taxable transaction, as it involves an exchange of personal data for access to the platform. If the court upholds this interpretation, the consequences could impact the entire tech industry across the European Union.
