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

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 ...