Category Taxation in Italy

Italy Halves Web Tax Proposal

December 20, 2017 Taxation in Italy

Italian web taxROME – Italy is persevering with its plan to impose a web tax, although the rate of the tax has been dropped.

On December 19th the lower house of Italy amended the country’s 2018 budget bill, lowering the rate of the proposed “web tax”.

Italy had previously proposed that a new tax is introduced on internet transactions, levied at a rate of 6 percent of the value of the transaction.

The rate has now been dropped to 3 percent.

The new tax will be levied on the sale of “intangible digital products” namely services such as online advertising and sponsored links.

The measures are expected to hit a number of internet giants, such as Google and Facebook, which see a significant portion of their incomes coming from advertising.

The tax will not apply to all sales, and will only be pai...

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Italy Steps Closer To “Web Tax”

November 28, 2017 Taxation in Italy

italy taxROME – Italy looks set to be a leader in the world by implementing one of the first digital sales taxes.

Over the weekend the Senate of Italy approved the implementation of a new tax on digital sales.

The tax is designed to expand the tax net to include multinational internet businesses which sell goods and services to Italians, but do not pay any local taxes by virtue of being registered in a different jurisdiction.

The new tax will require the online businesses to withhold a tax of 6 percent at the time of the sale, passing the revenues to the tax authorities.

The tax is expected to come into effect in January 2019, and will raise approximately EUR 114 million per year in extra tax revenues.

The exact mechanics of the tax have not yet been confirmed, but the government is expected to re...

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Vatican Cleaning Up Tax Affairs of Account Holders

October 20, 2016 Taxation in ItalyTaxation in Vatican

Taxes for Vatican bank accountsVATICAN – Italian taxpayers with bank accounts in the Vatican now have less than 180 days to settle their tax affairs and declare their incomes to the Italian government.

Earlier this week the Vatican released a statement explaining the procedures which will soon need to be followed by Italian taxpayers with bank accounts with the Institute for the Works of Religion, often simply called the Vatican bank.

The Vatican clarified that as of October 15th a new agreement had come into effect between the city-state and Italy, in an effort to increase fiscal transparency and the potential for tax evasion through the infamous Vatican bank.

Italian taxpayers with accounts at the Vatican bank, were told that they have 180 days from the implementation of the new tax agreement to inform tax authoritie...

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Italy To Tax Speculative Bitcoin Profits

September 9, 2016 Taxation in Italy

ROME – Italian tax authorities have confirmed that they will treat Bitcoins as a currency, unless they cryptocurrency is held for speculative purposes.

Late last week the Italian tax authority Agenzia della Entrate issued new information confirming the treatment of cryptocurrencies for tax purposes.

The new release confirmed that the purchase and sale of cryptocurrencies will be exempt from Value Added Tax.

The ruling regarding VAT effectively treats cryptocurrencies as a currency, and not an asset, a move which fall in line with recent rulings regarding the treatment of cryptocurrency.

However, if the cryptocurrency is bought or sold as a means of making a speculative profit, the arising profits shall be liable for income tax charged at the appropriate rate for the parties involved.

Th...

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Tax Evasion a Major Problem in Italy

December 17, 2015 Taxation in Italy

ROME – Tax evasion is much bigger dilemma in Italy then previously thought, and reducing the problem by even 50 percent could create hundreds of thousand more jobs.

On December 16th the Italian employers’ organization Confindustria issued a new report claiming that the country loses as much as EUR 122 billion per year due to tax evasion.

It was claimed that tax evaders in Italy face a very low risk of being caught, with 99 percent of taxpayers facing no risk of undergoing a spot check on their tax affairs.

In its report the Confindustria claimed that if the rate of tax evasion could be cut by even half, the national economy could be boosted by approximately 3.1 percent while also generating an additional 335 000 jobs.

The largest portion of the tax evasion came from non-payment of valu...

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