Our digital and tech & comms expertise for the DST consultation in Italy

By Gaetano Salvioli, Giuliana Polacco, Annarita De Carne


Italian Revenue Agency is moving forward with the collection of Digital Service Tax (DST). DST has been in force in Italy since 1 January 2020. However, implementation rules and practical indications regarding the method for the calculation of the tax and the actual payments which shall have to be made by 16 February 2021, as well as the filing of the tax return (to be made by 31 March 2021) are still missing.

The delay in the issuance of the implementation rules is considered a sign of possible suspension of the actual collection of the tax, awaiting the Discussions on Pillar 1 and Pillar 2 on the OECD side and avoiding possible retaliation measures from the US.

On 16 December 2020, the Revenue Agency published the draft Regulations asking for comments from the Business and Tax community, which need to be submitted before 31 December 2020. 

An outline of the draft Regulations can be found in the attached Alert.

Bird & Bird, with its extensive experience in assisting Digital and Tech & Comm companies, will participate in the consultation and voice any comments that will improve the Regulations, whilst taking into account the real needs and business models of the companies potentially subject to DST.