Digital Zero-Price Market – VAT Consequences

Abstract

In Italy, criminal proceedings and large VAT assessments have been initiated against IT service providers in relation to the free access to their apps/platforms aimed at collecting users’ data. However, in the view of the authors, there is currently no legal ground to consider this a supply of services relevant for VAT given the lack of a legal relationship pursuant to which there is a reciprocal performance (exchange of a consideration versus an economically valuable supply).