The obligations related to the italian Tax on Digital Services (DST) have been postponed to 2021 May 16 for payment for the year 2020 and June 30 to submit the tax return. Once fully operational, within the declaration submission term, it will also be possible to submit a corrective declaration for the previous year. If the DST payment obligations is referable to a non-resident company, attention must be paid to the introduction of a passive solidarity principle for the italian-resident company, even if they are part of the the same company group. The passive solidarity regards the declaration and payment requirements relating to DST on behalf of non-resident taxable persons without a permanent establishment in Italy and located in collaborative states.
It should be noted that the appointment of a tax representative in Italy neutralizes jthis responsability.The non-resident company can designate an italian company of the same group to fulfill the obligations but the italian company must a be subjected to the DST too.
The companies subjected to the DST must keep “a special accounting” for the monthly collection of information on the revenues from taxable services and the quantitative elements used to calculate the part of the revenues generated in Italy, for each digital service performed.
There are two relevant documents, to be signed by the company legal representative and kept until the expiry of the verification terms::
1 analytical prospectus of the information, with monthly recording of the revenues and the quantitative elements used to calculate the tax and its settlement to be drawn up within the payment of the tax (May 16);
2 explanatory note of the information on revenues and quantitative elements used to calculate the tax, to be drawn up by the deadline for submitting the return.
The recent circular 3/E by Agenzia delle Entrate introduce a penalties suspension or the first year of application of the DST, given the objective difficulties and uncertainties, with reference to the accounting obligations for any errors or
irregularities committed during the transmission and compilation of the requested data. There are no penalties for violations
committed before the first 60 days following the date of publication of the legislative provision.
The DST is an indirect tax, deductible for IRES and IRAP purposes.
With reference to double taxation at international level, the problem exists, since the benefits of the double tax conventions cannot be applied.
