The Law introduces a 3% indirect tax applicable to the revenues derived from the provision of certain digital services (Italian DST) by building on the Italian DST measure already contained in the 2019 Budget Law but never entered into force in the absence of a required implementing decree.4
Taxable persons are Italian and foreign entities – either stand-alone or at the group level – with worldwide annual revenues of at least €750 million and Italian annual revenues stemming from the qualifying digital services of at least €5.5 million.
The new Italian DST is immediately effective as of 1 January 2020 without the need of any implementing decree.
Source EY
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