- Elimination of Subjective Parameter: The Budget Law for 2025 has removed the subjective revenue condition for the Digital Services Tax (Web Tax), meaning that digital service operators are now liable for tax solely based on the objective parameter of having a global turnover of at least €750 million, regardless of their revenue generated in Italy.
- Revised Payment Structure: The new law introduces a two-step payment system for the Digital Services Tax, requiring an advance payment of 30% of the owed tax by November 30 of the taxable year, followed by a balance payment due by May 16 of the following year, replacing the previous single payment deadline.
- Increased Compliance and Scope: By broadening the criteria for tax liability and eliminating the national revenue factor, the changes are expected to increase the compliance burden on non-resident digital platform operators and potentially enhance tax revenue for Italy, reflecting a trend among countries to simplify their Digital Services Tax frameworks.
Source 1stopvat
