Facebook parent company Meta is facing a potential tax bill of about 870 million euros ($925 million) in Italy after prosecutors launched an investigation into the company, two sources with direct knowledge of the matter said on Wednesday.
The investigation was initiated by the magistrates of Milan at the request of the European Public Prosecutor’s Office (EPPO), which asked the Guardia di Finanza police and the Italian Revenue Agency to investigate whether there was any case of user registration being subject to tax.
“We strongly disagree with the view that VAT should be levied on providing users with access to an online platform,” a Meta spokesperson said in an emailed statement to Reuters.
The spokesperson added that the company takes its tax obligations seriously, pays all taxes required in the countries where it operates and will cooperate fully with the authorities.
The EPPO, based in Luxembourg, said it did not comment on ongoing investigations, nor would it publicly confirm which cases it is working on.