The Italian Chamber of Deputies passed the 2018 Budget Law to the Senate. The bill includes the establishment of a new digital service tax while it also repeals the one from the previous year. The tax applies to the following services: (1) targeted advertising, (2) provision of a digital interface that allows interaction between users, and (3) transmission of data. The tax rate is set at 3% of the revenue generated from subjected services. The service has to be provided to a person resident in Italy. A global annual threshold of € 750'000'000 and a local annual threshold of € 5'500'000 for subjected services apply. The tax shall be implemented by a decree within four months from the implementation of the Budget Law.
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