Prepared by International Tax Services Italy Team
Starting from January 1, 2020, with a sunset clause linked to the outcomes of the OECD’s Pillars, Italy unilaterally introduced, by means of Law 145/2018, as amended (see here a courtesy translation of the Law), a “digital service tax” (see our previous Tax Insight). For FY 2020 the 3% tax must be paid on February 16, 2021 and a specific tax return is to be filed on March 31, 2021. In scope taxpayers are businesses that earn Italian digital revenues above certain thresholds. No traditional “nexus” is required.
Par. 46 of art. 1 of Law 145/2018 grants Italian Revenue Agency the power to issue secondary regulation, that is not a requirement for the entry into force (or effectiveness) of the law, to determine implementation and application details of the law.
On December 16, 2020 the Italian revenue Agency published a draft of the above cited secondary regulation (see here a courtesy translation of the draft secondary regulation) and opened a public consultation (see the link to the website of the Italian Revenue Agency) with December 31, 2020 as a deadline to provide written comments.
PwC TLS Italy’s Team will issue, in the next few days, a more in-depth analysis of the draft secondary regulation with the aim to contribute to the public consultation.
In case interested to discuss the impact of the Italian DST on your business model or the details on how to contribute to the public consultation, please contact our experts below.
Let’s talk
For a deeper discussion of how this might affect your business, please contact:
International Tax Services, Italy
PwC TLS Avvocati e Commercialisti
Partner
PwC TLS Avvocati e Commercialisti
Partner
PwC TLS Avvocati e Commercialisti
Partner
PwC TLS Avvocati e Commercialisti
Director
PwC TLS Avvocati e Commercialisti
Director
PwC TLS Avvocati e Commercialisti
Senior Manager