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The 2020 Italian draft budget (Draft Budget) introduces a 3% unilateral ‘Digital Services Tax’ (DST). The DST will apply beginning January 1, 2020. The Italian government expects the DST to generate roughly 708 million EUR in tax revenue per year.

Although it does not contain any specific references, the Italian DST is structured similarly to the recently introduced French DST and the European Commission’s proposal (2018/0073 (CNS) - Proposal for a Council Directive on the common system of a digital services tax on revenues resulting from the provision of certain digital services).