ITALY OPENS PUBLIC CONSULTATION ON DIGITAL ECONOMY TAXATION

Italian Finance Minister has open a public consultation on the EU Commission Directive proposals and recommendation on Digital Economy Taxation released last March.

The document quotes the EU commission, reiterating that “”The time has come to set up modern, fair and effective fiscal standards for the digital economy” which is the reason for the proposals of the EU package for the equitable taxation of the digital economy””.

The Minister expressly ask the respondents to be very specific in identifying the chapter/recitals of the proposals text about which the comments are being provided on both the comprehensive approach and the targeted short-term approach.

The contributions to the consultation, that runs until June 22nd, 2018 and is requesting input from the key community stake-holders, will be analyzed before making any next step on this topic locally.

Det3 Comments:

Being clear that this topic is at the top priority list of the Italian Government and being taken with determination and seriously, if the country Government continues to support the line of immediate action in the short term on this topic, Italy will need to set focus in reconciling the “Web Tax” measures passed in their recent Bill for 2018 as the scope of digital transactions defined there does not seem to be aligned with the one contained in the Directive proposal for a targeted Digital Services Tax. At a different level, same would be necessary for the Digital Nexus PE the country recently added to its local tax regulations.

It will be interesting to see how the specific technical feedback requested under the consultation reconciles with the evolved Italian political landscape and the supranational relationships field in terms of final output. Digital Economy Taxation is clearly a priority topic in Italian budget.

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