Italy from July 2014 will make Italian companies buy their Italian internet adverts in Italy. The move will combat tax abuse by non-EU internet companies which force Italian companies to buy adverts through tax havens, so as to pay little or no tax. The move might be challenged as supposedly against EU competitiveness rules. But Italy will have a response that it is tackling both tax avoidance and abuse of the free market rules by the non-EU internet companies. Just this month the Parliamentary Public accounts Committee criticised HMRC for the UK losing vast sums through not taxing non-EU internet companies. Seems the Italians might have found a solution.
Tax Barrister, Accountant