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Italy Turns Up the Heat on EU with Digital Sales Tax

Pubblicato su: TP Week

Italy is hoping its proposed digital sales tax will send a message to the EU and accelerate the process of finding consensus on digital economy taxation. However, the proposal interferes with the EU’s plans and could create double taxation scenarios.

Italy hopes to curb tax avoidance by digital companies with a proposal for a new digital sales tax that, if approved, would apply from January 1 2019. The proposal would impose a 6% tax on digital transactions made through electronic means to Italian tax residents with business income, and to Italian permanent establishments (PE) of non-tax residents. This will work out as the buyer paying the service provider 94% of the amount, while withholding 6% for the Italian Treasury.