- Removal of Revenue Threshold: The 2025 Italian Budget Law eliminated the €5.5 million annual revenue threshold for taxing qualified digital services in Italy, meaning any revenue from such services will now be subject to the Digital Services Tax (DST) if the global revenue threshold of €750 million is met.
- New Payment Terms: The law introduces revised payment deadlines, requiring companies to make an advance payment of 30% of the DST owed for the previous year by November 30 of the same year, with the remaining balance due by May 16 of the following year.
- Wider Applicability and Compliance: The removal of the revenue threshold expands the DST’s applicability to businesses with minimal digital activity in Italy but substantial global revenues. Affected companies must prepare for new reporting and payment obligations starting January 1, 2025, and should evaluate their operations to ensure compliance with the DST regulations.
Source EY
