Italy Tax Agency Clarifies Withholding Tax Treatment of Online Rental Service Commissions

The Italian Revenue Agency Sept. 18 issued Letter No. 250/2025, clarifying the withholding tax treatment of commissions on online rental services. The taxpayer, a software developer, provided online platforms for rentals and second-hand sales of clothing and accessories by partner companies to end customers. The taxpayer entered into the contracts with end users, and stored and shipped the inventory. The partner companies invoiced the taxpayer monthly for the total rental fees less the taxpayer’s commissions. The taxpayer sought clarification regarding whether the rental commissions were subject to withholding tax. Upon review, the Tax Agency clarified that: 1) withholding taxes apply ...