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Italy Amends Digital Services Tax Regime: Key Changes in the 2025 Budget Law

Italy has introduced significant changes to its digital services tax (DST) regime through its 2025 budget law, published in the Official Gazette on December 31, 2024. These amendments aim to expand the scope of the DST and modify its payment requirements, reflecting a broader shift in Italy's approach to taxing the digital economy.


Key Changes in the Digital Services Tax Framework


  1. Removal of the Local Revenue Threshold

    The budget law eliminates the €5.5 million Italian revenue threshold. Now, any company with global annual revenue exceeding €750 million will be subject to the DST if they generate any amount of revenue from in-scope digital services in Italy. Previously, the DST applied only to companies meeting both the global and local revenue thresholds.

  2. Revised Payment Obligations

    The updated law introduces a new payment structure. Companies subject to the DST must:

    • Pay a deposit equal to 30% of the DST due for the preceding calendar year by November 30.

    • Settle the remaining balance by May 16 of the following year.


Looking Ahead: Potential Implications


The latest amendments to Italy’s DST could have significant implications for multinational companies. Removing the local revenue threshold broadens the tax's applicability, potentially increasing the tax burden for digital service providers operating in Italy. For businesses, these developments underscore the importance of staying informed and proactive in managing compliance with Italy’s evolving tax regulations.


How We Can Help


At RCLex - Studio Legale Associato, our team of experts specializes in advising businesses on digital taxation and international tax compliance. Whether you need guidance on DST compliance, tax planning strategies, or navigating cross-border disputes, we’re here to assist.

Contact us today to learn how we can support your business in adapting to Italy’s evolving tax landscape. For more information, feel free to reach out to claudio.cipollini@rclex.it or giorgio.beretta@rclex.it




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