Italy and the United States have jointly voiced opposition to what they term “discriminatory” digital service taxes, signaling a possible shift in Rome’s stance on a contentious levy that has long frustrated Washington. The announcement came on Friday following high-level meetings between Italian Prime Minister Giorgia Meloni and U.S. President Donald Trump, as well as his running mate JD Vance.
The joint statement marks a significant development in transatlantic economic relations, particularly regarding taxation of digital services. The Italian “web tax,” introduced in recent years, was designed to target the revenues of major multinational tech companies operating in Italy, many of which are headquartered in the United States. The tax affects digital giants like Google, Meta, Apple, and Amazon firms that have long drawn the scrutiny of European regulators over issues ranging from market dominance to tax practices.
Despite its relatively modest fiscal returns in a nation with annual public spending exceeding €800 billion, the web tax has been a politically sensitive subject for the Meloni government. Critics argue that while the measure aims to promote tax fairness in the digital economy, it disproportionately targets American firms, risking retaliatory trade measures and diplomatic friction.
Meloni’s transatlantic outreach, especially her warm reception from Trump who has previously taken a tough stance on European digital taxes may indicate a recalibration of Italy’s approach. Trump’s administration had threatened tariffs in response to similar taxes introduced by France and other European nations, viewing them as unfair barriers to U.S. business interests.
By aligning with Washington on this issue, Italy may be seeking to foster stronger bilateral ties and preempt potential economic backlash. The move could also reflect broader European tensions around how best to tax digital services, amid ongoing discussions within the OECD on establishing a global framework for digital taxation.
As the global digital economy continues to expand, the debate over fair and effective taxation remains unresolved. Italy’s apparent pivot could have ripple effects across Europe, where several countries are re-evaluating national digital levies in anticipation of a broader international agreement.
