Italy will introduce a new 3% digital services tax on January 1, 2020
Italy has announced it will impose a new 3% digital services tax, effective January 1, 2020. This tax will apply to revenue that companies or groups of companies generate through providing specified digital services to Italian customers. This new levy will only affect companies that, individually or group-wide, have at least €750 million in world-wide revenue and generate at least €5 million in revenue within Italy from providing digital services.
The tax will be repealed when (and if) internationally agreed provisions on taxation of the digital economy become applicable.
For more information, contact your KPMG advisor.
Information is current to October 22, 2019. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500