Italy has introduced a tax measure under which foreign companies must apply for a VAT number if they intend to engage in the sale of online advertising to enterprises in Italy. This measure is to take effect on 1 July 2014. The delay in carrying out this measure which was originally planned for 1 January 2014 gives Italy enough time to obtain EU approval for the legislation and will also allow time for the drafting of measures to avoid the shifting of profits by internet companies.
The new measures provide that internet advertising services (including search advertising services) and online sponsorship should be bought only through Italian media, third-party operations or entities that have an Italian VAT registration including publishers, advertising agencies or search engines.
