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Italian 'Web Tax' A Step Closer

Wednesday, December 6, 2017

Italy's Senate Budget Committee has approved a proposal to introduce a tax on certain digital sales.

Under the proposal, contained in an amendment to the 2018 budget law, businesses and individuals purchasing services from major online platforms such as search engines and social media websites will be required to withhold six percent of the amount and remit it to the Italian tax authority.

The tax is designed to increase the tax take from large internet companies like Google and Facebook and will raise an estimated EUR114m (USD135m) per year in revenue. Certain taxpayers, such as small businesses, will be exempt from the measure, as will transactions by individuals of less than EUR30 in value.

If approved by parliament, which is expected by the end of the year, the tax would enter into effect in January 2019. The Government intends to clarify the exact scope of the measure by April 2018.