Following in the footsteps of many other countries, the Italian
Government approved on 15 October 2019 the introduction of a
Digital Services Tax (DST) coming into effect from 1 January
2020.
The DST imposed a rate of 3% on revenues generated from specific
B2B and B2C digital services provided to Italian customers. The aim
is to tax businesses which traditionally paid low amounts of tax in
foreign countries they operated in, those being: search engines,
social networks and online marketplaces.
What services does the Digital Services Tax apply to?
The DST applies to revenues resulting from the provision of the
following services, provided the user of the taxable service is in
Italy:
