Italy to implement web tax from 2019

28 Nov 2017

The Italian government has approved a measure which will introduce a 6% ‘web tax’ on the sale of digital services such as online advertising. The move is expected to raise around EUR114 million (USD135 million) a year when it comes into force in January 2019. The new levy is aimed at internet giants such as Google and Facebook who receive income from web services in Italy but who choose to pay taxes in countries with a more favourable tax regime. Further details of the new system are due to be released next year. Italy is one of the first nations to look at taxing internet firms in such a way. Earlier this year Google agreed to pay EUR306 million in back taxes to the Italian government after a dispute over its financial arrangements in the country.

Italy