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24 January 2025 Italy approves significant changes to the Digital Services Tax
With the approval of the 2025 Italian Budget Law (n. 207 of December 30th), the Italian government removed the €5.5m threshold for annual revenue from qualified digital services taking place in the Italian territory. This change means that any level of revenue generated in Italy will now be subject to the Digital Services Tax (DST), provided the global threshold of €750m in worldwide revenue is met.
The €5.5m threshold for annual revenue from qualified digital services relevant in the Italian territory has been removed. As a result, any revenue for digital services relevant in the Italian territory, irrespective of the amount, will be subject to DST if the remaining threshold is met. The remaining threshold is €750m in worldwide revenues. Wider applicability: The removal of the revenue threshold for Italian digital services means that parties with a small digital activity in Italy but with significant global revenues may now fall within the scope of the DST. Adjusted compliance timelines: The advance-payment obligation requires affected taxpayers to make earlier financial outlays than before. Businesses will need to estimate their DST liabilities accurately to comply with the November advance-payment requirement. Companies that qualify as taxable persons under the new rules will need to comply with relevant reporting, accounting and payment obligations starting from 1 January 2025. Companies potentially affected should carefully evaluate their position, especially if they currently fall within the DST definition of providing digital services as per paragraph 37 of Article 1 of Law no. 145/2018, involving the:
Document ID: 2025-0318 | ||||||