Italy: Budget Law amending digital services tax entered into force (Law no. 207 of 2024)

On 1 January 2025, the Budget Law amending digital services tax (DST) entered into force. The law removes the EUR 5.5 million threshold for digital services revenue. The law now applies to entities with over EUR 750 million in revenue (group or standalone), including both resident and non-resident companies. The law covers digital services provided to Italian users, including intermediation, advertising, and data transmission. The law also introduces a revised payment schedule, requiring an advance payment of 30% by 30 November, with the balance due by 16 May of the following year. The return submission deadline remains 30 June.