Country-specific updates: Italy

Italian Tax Authority, Ruling no. 146 of 3 March 2021

In the case of gaming operations with terminals, the VAT exemption (Article 10, par. 1, n. 6 and 7 of the Italian VAT Decree) does not apply, to the lease or other contract transferring the possession or availability of gaming machines.

DLA Piper comment: As already clarified by the Italian Tax Authority Circular letter no. 21/2005, the VAT exemption regime is applicable to the collection of bets by gambling machines as well as also to the relationships between the gaming concessionaire and third parties appointed for the collection of bets. Therefore, the supply of gaming machines by lease or other contract must be duly subject to VAT at the standard rate.

Italian Tax Authority, Circular letter no. 3 of 23 March 2021

The Italian Tax Authority has provided important clarifications about the digital service tax (DTS) such as the territorial requirement linked to the location of the user, the determination of the taxable base as well as the payment and the refund claim procedure.

DLA Piper comment: The Circular letter follows-up the Italian Tax Authority Provision of 15 January 2020 which took into account the results of the public consultation ended on 31 December 2020. It should be pointed out that the Circular letter already includes the amended deadlines for the DTS annual payment and for the file of the annual DTS return provided for by the Law Decree no. 41 of 22 March 2021. As a result, the DST should be paid by 16 May 2021 and taxpayers shall file annual DST return by 30 June 2021.