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Italian Budget for 2025 Includes Expanding DST to All Service Providers

18 October 2024

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Proposed Changes

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Italy

Italy Council of Ministers approved the draft Budget Law for 2025 during its meeting held on 15 October 2024. The following day, a press conference was held on the budget measures, during which it was announced that the thresholds for Italy's 3% digital services tax (DST) would be eliminated. The DST currently applies to both resident and non-resident service providers meeting the following conditions at the company or group level: Total revenue of at least EUR 750 million; and Total revenue from digital services supplied in Italy of at least EUR 5.5 million. If approved, the elimination of the thresholds...