- The 2025 Italian budget law introduces changes to the digital services tax DST
- The law removes the EUR 5.5 million revenue threshold for digital services in Italy but keeps the global revenue threshold of EUR 750 million
- A new requirement for DST advance payments is introduced, with 30% of the previous year’s DST due by November 30 each year
- These amendments take effect from the calendar year 2025
- For obligations due in 2025 related to 2024, existing thresholds apply pending official confirmation
- DST is charged at 3% on revenues from certain digital services including targeted advertising, multi-sided digital interfaces, and data transmission from user activities
- Previously, DST applied to companies with over EUR 750 million global revenue and more than EUR 5.5 million from Italian digital services
- The removal of the Italian revenue threshold could increase the number of companies liable for DST
- Specifics on the 30% advance payment are limited, awaiting further guidelines
- Companies meeting both revenue thresholds in 2023 will owe full DST for 2024 by May 16, 2025, and an advance for 2025 by November 30, 2025
- In 2026, companies must meet the global threshold and have any revenue from Italian digital services in 2024 to owe DST for 2025, with similar payment deadlines as 2025
- New DST subjects in 2025 may not have immediate payment or filing obligations pending further tax authority guidance
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
