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On 24 March 2021, the Italian tax authorities released official guidance on the digital service tax (DST) that is being implemented in Italy pending broader solutions from the OECD on the taxation of digital services. The extensive guidance provides significant clarifications on the definitions of taxable persons and services, exemptions, territorial nexus requirements, reporting and accounting obligations, refunds, and double taxation relief. In addition, through Law Decree No. 41, published in the official gazette on 22 March 2021, the Italian government has further postponed the payment and reporting deadlines for the DST to allow taxpayers time to comply with the additional guidance. In particular, as a result of the postponement:
- The new deadline for payment of the DST due for fiscal year (FY) 2020 is 16 May 2021 (extended from 16 March 2021); and
- The new deadline for filing the DST return related to FY 2020 is 30 June 2021 (extended from 30 April 2021).
Source Deloitte
