Italy is pursuing a meta of Facebook for $925 million in sales taxes.

As prosecutors opened an inquiry into the firm, Facebook parent company Meta could owe over 870 million euros ($925 million) in taxes in Italy, according to two persons with direct knowledge of the situation on Wednesday.

The European Public Prosecutor's Office (EPPO) urged the Guardia di Finanza police and the Italian Revenue Agency to investigate the possibility of user registrations being subject to tax, which resulted in the opening of the probe by Milan magistrates.

The Luxembourg-based EPPO and Meta were only available for comment.

On Wednesday, the Italian newspaper Il Fatto Quotidiano broke the news of a tax audit into Meta.

According to the two sources, investigators think that free membership on Meta platforms is a trade-off for access to user data and should be viewed as a service exchange, subjecting it to VAT sales tax.

According to the sources, a model developed by Italy's tax police and revenue agency predicted that Meta would be required to pay almost 220 million euros in sales tax there in 2021.

Eight hundred seventy million euros were determined to be the total for the time frame before 2015.

According to one of the sources, the most important issue was creating a connection between free access and data transmission as a taxable transaction, which might affect other international corporations and other European nations.

According to the sources, Meta has been informed of the evaluation made by the Italian authorities, and a conversation between the business and the revenue agency is currently ongoing.

The business can either accept the investigation findings and pay the demanded sum or contest them and file an administrative complaint.

The Milan Prosecutor's Office recently launched numerous tax inquiries against large global IT firms like Google and Apple.

Once a settlement arrangement has been made, the criminal inquiry is typically finished.