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.
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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.
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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.
Yes, income tax in another topic, though. The point here is VAT, which is a consumption tax. These are two different things. It wouldn’t affect the income tax regime.