The Italian Budget has enacted a 3% web tax, and a new PE definition based on economic, vs. physical, presence.
The Tax is due by the buyers of the above services unless the supplier declares in the invoice that it has not reached the threshold of 3,000 transactions in the calendar year.
The PE definition goes beyond the OECD’s intent, and will certainly lead to additional disputes in Italy and other countries developing such a subjective measure that also attracts double taxation.
EY’s global tax alert provides additional details as reference.
Click to access 2017G_07179-171Gbl_Italy%20enacts%20Web%20Tax%20and%20new%20PE%20definition.pdf
Strategizing Multinational Tax Risks 
Comments on: "Italy: New web tax & PE" (2)
Keith, I have long enjoyed your tax blog. I was wondering if I could reprint various articles that you have run on the Emerging & Frontier Markets site. See https://www.emerging-frontiermarkets.org/ I would of course attribute any content to you. Regards.
Hi Gary, I like the site and know several authors, Dr Erasmus and others, of the articles listed. Thus, you can list it accordingly with attribution of content.
Regards,
Keith