Once again, there is something going on in Italy – they have come up with a VAT registration requirement for non-resident online advertisers, if I read the news correctly.
I don’t quite get it – even if these companies (read: Google) would register, the reverse charge would still apply on their advertising sales to Italian businesses (because the Googles are not resident in Italy). Only when there is an online sale to individuals, VAT would be due. But that rule already applies under the current Directive for non-EU online sellers, and will expand to EU e-sellers by 1/1/15.
So what is the fuss about? I will let you know if / when I find out.
Also see below for rather loudly written articles on this subject in Forbes:
I Didn’t Think It Possible But Italy’s Google Tax Law Just Got Even Worse – Forbes.
A Short Note To Francesco Boccia – Forbes.
Italy Passes The Illegal Google Tax – Forbes.