Italian tax authorities argue that user registrations with X, LinkedIn and Meta platforms should be seen as taxable transactions as they imply the exchange of a membership account in return for a user’s personal data.
[…]
The case could ultimately be extended to the 27-nation European Union since VAT is a harmonised EU tax, and force a rethink of the business model of the tech industry.
[…]
The Italian approach could affect almost all companies, from airlines to supermarkets to publishers, who link access to free services on their sites to users’ acceptance of profiling cookies.
Eh
Money is not involved directly. User signs away permission to use their data, receives access to service in return.
The company then turns that data into money.
Trading is already taxed though. Otherwise no company on this planet would ever purchase anything and switch to gold as a currency.
Just because it’s personal data traded for a service doesn’t make it any less of a taxable trade.
I think there’s a very strong argument here that this transaction should be taxed in Italy when Italian citizens currently in Italy partake in that transaction.
That’s something that is definitely not happening (not that they are being taxed sufficiently elsewhere either, lol).