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Italy’s First Digital Tax Payment Creates Deadline Crunch, Doubt

Jan. 8, 2021, 10:42 AM

With just weeks to go before Italy’s first digital tax payment is due, tech companies are struggling to figure out how much they owe.

The 3% tax on digital revenue, which started accruing at the start of 2020, is due Feb. 16. Facing a tight deadline and lacking key guidance, tax practitioners are worried companies could be hit with costly penalties if they underpay.

“Playing it safe might mean paying the service tax on a huge amount of money,” said Stefano Giuliano, a partner at CMS in Rome. “People are struggling to understand what to ...