Italy's digital services tax (DST), introduced in 2019, continues to be a point of contention between Italy, the United States, and multinational tech companies. The tax, which levies a 3% charge on revenue from specific digital transactions, targets large companies with global revenues exceeding €750 million. The core issue revolves around whether this tax unfairly targets American tech giants like Meta, Google, and Amazon.
In 2025, Italy amended its DST by removing the €5.5 million revenue threshold for digital services within Italy. This change broadens the tax's reach to include more companies, a move intended to address US concerns about discrimination. However, the US has consistently pushed for the complete abolition of the tax, viewing it as a barrier to investment from cutting-edge tech companies.
Prime Minister Giorgia Meloni and President Donald Trump addressed the digital tax issue during their meeting in April 2025, agreeing on the need for a non-discriminatory environment for tech investments. While Italy aims to balance its revenue needs with maintaining positive international relations, the future of the DST and its impact on transatlantic trade remain uncertain as of April 2025.