Database

Article 39 of the Presidential Decree no. 633 of 1972 states state electric archives related to accounting data for VAT declarations might be kept in a foreign country only if some kind of convention has been concluded between Italy and the receiving country governing the exchange of information in the field of direct taxation. Therefore, such limitation does not apply intra-EU.

There are only labour market tests for Independent service suppliers (ISS). As per article 22 of the Consolidated Act on Immigration, the competent Employment Center informs local Employment Centres about the offer and advertises it on the Internet as well as by using all other possible tools. After 20 days, all applications submitted by national and EU workers are forwarded to the Single Desk for Immigration in charge of the procedure. Labour market tests do not apply to highly qualified workers.

There are quotas for independent service suppliers (ISS), which are yearly set through an immigration quota decree.

Telecom Italia (TIM) is target of an inquiry by Italy's antitrust authority alleging that it obstructed the roll out of fast internet in areas it deemed to be non-economically viable, thereby jeopardizing state tenders in those regions. The antitrust authority is also looking into whether TIM tried to pre-emptively capture clients in those areas, using anti-competitive commercial practices, locking them into long-term contracts and applying prices alternative players are unable to match.

In March 2018, Italy's antitrust authority fined TIM EUR 4.8 million, and in April accepted its vows to end anti-competitive practices and to build an FTTH fibre-optic network covering 29 major Italian cities.

In the European Union, there is no general principle for the use of copyright protected material comparable to the fair use/fair dealing principle in the US. Directive 2001/29/EC defines an optional, but exhaustive set of limitations from the author´s exclusive rights under the control of the “three-step test”. This is a clause in the Berne Convention that establishes three cumulative conditions to the limitations and exceptions of a copyright holder’s rights. The Directive has been transposed by Member States with significant freedom.

Italian copyright law does not recognize the principles of fair use/fair dealing, but only exceptions to the copyright.

In 2013, a unified European system of patent's granting and enforcement was approved. The Unitary Patent (UP) provides a single pan-European patent as an additional option for companies or investors seeking patent protection in Europe. The system would ensure uniform protection in 26 Member States (Croatia and Spain have opted out over language issues, while Italy became a participant in September 2015) and also includes a litigation system within a Unified Patent Court (Bulgaria, Croatia, Italy, Poland and Spain have opted out).

In the patent application process, designation of the inventor is mandatory. Additionally, non-Italian residents must name a domicile in Italy, either directly or through a patent agent.

Law 56/2012 provides for a screening mechanism for foreign investment. However, there are no reports of cases where it was applied. The government may exercise certain special powers in certain activities of strategic importance, such as communications. In case there is a threat of serious injury to the essential interests of defense and national security, the Government has following special powers:
- to impose specific conditions in the purchase of shares;
- to veto the adoption of resolutions relating to special operations such as transfers, mergers, splitting up, and changes of activity;
- to reject the acquisition of shares, where the buyer seeks to hold a level of participation in the capital that is likely to prejudice the interests of defense and national security.

The Italian government issued rules amending the procurement law that now requires all public administrations to first consider re-used or free software before using proprietary licenses. Importantly, the new rules include an enforcement mechanism, which can cancel decisions that do not follow these procedures.

It is reported that the right of access to public procurement is limited to regional trade agreement partners and members of the WTO’s Government Procurement Agreement.

Italy’s public procurement practice is often criticized for a lack of transparency and corruption, especially at the local level. The Italian press has also recently reported on alleged corruption involving the abuse of emergency procurement laws.

The European Regulation No. 1042/2013 amending the Council Implementing Regulation No. 282/2011, declares that from January 2015, all supplies of telecommunications, broadcasting and electronic services will be taxable at the place where the customer belongs. These include, inter alia:
- images or text, such as photos, screensavers, e-books and other digitised documents e.g. PDF files;
- music, films and games, including games of chance and gambling games, and of programmes on demand;
- online magazines website supply or web hosting services distance maintenance of programmes and equipment;
- supplies of software and software updates advertising space on a website.

Both EU and non-EU suppliers have to register for VAT purposes and comply with the relevant obligations of the Member State where the customer is established, has his/her permanent address or usually resides. This may be burdensome as there are 81 VAT rates across the 28 EU countries and the rates may vary between 3% (Luxembourg) to 27% (Hungary) across member states. Furthermore, member states impose varying thresholds at which companies must begin paying VAT, ranging from EUR 0 to EUR 60,000.

As an alternative to obtaining multiple VAT registrations in each Member State where a supplier has a customer, affected suppliers may be able to opt to account for VAT across the EU via a a web-portal in the Member State in which they are identified. Hence, the system, known as the Mini One-Stop Shop (MOSS) scheme, allows taxable persons to avoid registering in each Member State of consumption.

Italy reversed its introduction of a VAT registration requirement for providers of online advertising services (the law enacted in late December 2013 was repealed in March 2014).

Italy has enacted a flat tax rate (3%) on the sale of digital services such as online advertising.The new tax relates to the performance of services carried out through electronic means” rendered by both resident and nonresident enterprises to Italian businesses and to Italian permanent establishment of nonresidents. “Services carried out through electronic means” shall be those supplied through the Internet or an electronic network, the nature of which makes the performance completely automatic, with minimum human intervention and for which the information technology component is essential. The aforementioned services are to be identified by a specific Decree to be issued by the Minister of the Economy and Finance at a later date. The Tax would apply at a 3% rate on the amount of the consideration paid in exchange for the performance of the above services, net of Value Added Tax, and regardless of where the transaction is concluded.