Chamber Dossier on Taxation: “From January to November 2022, Revenue from Gaming Will Increase by 21%”

ITALY (February 13, 2023) — “As regards 2022 (limited to the period January-November 2022) and tax revenues ascertained on the basis of the criterion of legal competence amount to 486,016 million euros. (…) Gaming revenues showed an increase of 2,265 million euros (+20.8%)” according to the Dossier Essential elements of taxation in Italy published in the Chamber.

“Revenue related to games amounted, in 2020, to 10,510 million euros (-5,095 million euros, -32.6%),” it adds.

“During the XVII legislature, the law of 11 March 2014, n. 23 conferred a mandate on the Government to create a more equitable, transparent, and growth-oriented tax system. In the implementation of the aforesaid delegation, measures have been adopted concerning, among other things: tax simplifications and pre-compiled tax returns; taxation of manufactured tobacco; composition, powers, and functioning of the Census Commissions; electronic invoicing and electronic transmission of VAT transactions; rules on legal certainty in the relationship between the tax authorities and the taxpayer; measures for the growth and internationalization of companies; a review of the rules on rulings and tax disputes; a review of the rules governing the organization of tax agencies; a review of the penalty system; measures for the simplification and rationalization of the rules on collection; estimation and monitoring of tax evasion and monitoring and reordering of tax erosion provisions. On June 27, 2015, the deadline for the implementation of the delegation expired. Therefore, among others, the rules concerning the revision of the register of buildings have remained unimplemented or partially implemented, without prejudice to the reform of the Census Commissions; the revision of the collection of local authorities and of the taxation on corporate income; the rationalization of VAT and other indirect taxes, the revision of the estimation and monitoring of tax evasion and monitoring and reordering of tax erosion provisions. On June 27, 2015, the deadline for the implementation of the delegation expired. Therefore, among others, the rules concerning the revision of the register of buildings have remained unimplemented or partially implemented, without prejudice to the reform of the Census Commissions; the revision of the collection of local authorities and of the taxation on corporate income; the rationalization of VAT and other indirect taxes, the revision of the estimation and monitoring of tax evasion and monitoring and reordering of tax erosion provisions. On June 27, 2015, the deadline for the implementation of the delegation expired. Therefore, among others, the rules concerning the revision of the register of buildings have remained unimplemented or partially implemented, without prejudice to the reform of the Census Commissions; the revision of the collection of local authorities and of the taxation on corporate income; the rationalization of VAT and other indirect taxes, the revision of the collection of local authorities and of the taxation on corporate income; the rationalization of VAT and other indirect taxes, the revision of the collection of local authorities and of the taxation on corporate income; the rationalization of VAT and other indirect taxes, the revision of the regulation of public gaming and the revitalization of the horse racing sector; the review of energy and environmental taxation ”.

“ Revenue related to games amounted to 12,401 million euros in 2021 (+1,895 million euros, +18.0%)”.

“As regards 2022 (limited to the period January-November 2022) and tax revenues ascertained on the basis of the juridical accrual criterion amount to 486,016 million euros, with an increase of 44,539 million euros compared to the same period of 2021 (+ 10.1%). The significant increase in revenue recorded in the period under review is mainly influenced by three factors: the carry-over of the positive effects on revenue that were determined starting from 2021, the effects of Decree-Law no. 34/2020 (the so-called “relaunch decree”) and Legislative Decree no. 104/2020 (so-called “August decree”), which in the two-year period 2020-2021 had ordered extensions, suspensions and resumption of tax payments and, finally, by the effects of the increase in consumer prices which influenced, in particular, the growth of VAT revenue. The revenue related to games showed an increase of 2,265 million euros (+20.8%)”.

“The 2023 budget law (article 1, paragraph 151 of law no. 197 of 2022), to counter fraud and evasion in the field of value added tax, imposes communication obligations relating to data of suppliers and of the operations carried out, on the of the digital platform that facilitates the online sale to final consumers of certain goods (such as, for example, mobile phones, game consoles, tablets, PCs and laptops), subsequently to be identified by decree of the Minister of Economy and Finance, which are present in the territory of the State”.

“ Revenue related to games in 2021 amounted to 12,401 million euros (+1,895 million euros, +18.0%). Tax revenues deriving from assessment and control activities amounted to 8,587 million (-264 million euros, equal to -3.0%) of which 4,210 million euros (+235 million euros, +5.9% ) inflows from direct taxes and 4,377 million euros (-499 million euros, -10.2%) from indirect taxes. In the period January-November 2022, the latest figure available at the time of publication, tax revenues ascertained on the basis of the juridical accrual criterion amounted to 486,016 million euros, an increase of 44,539 million euros compared to the same period of the previous year (+10.1%). IRPEF revenue, which amounted to 187,787 million euros (+6,576 million euros, equal to +3.6%), and VAT revenues amounted to 147,610 million euros (+20,924 million euros, equal to +16.5%). Total gaming revenues (which include various taxes classified as both direct and indirect tax revenues) amounted to 13,153 million euros (+2,265 million euros, equal to +20.8%). assessment and control amounted to 10,752 million euros (+3,697 million, equal to +52.4%) of which: 5,792 million euros (+2,356 million euros, equal to +68.6%) came from taxes direct taxes and 4,960 million euros (+1,341 million euros, equal to +37.1%) from indirect taxes”.

“The 2023 budget law (paragraph 258) also provides that the Revenue-Collection Agency, in order to optimize the IT services instrumental to the national collection service, transfers, by 31 December 2023, the activities relating to the operation of the ICT, demand and delivery, collection by entities and taxpayers and demand and delivery of corporate services to the company SOGEI Spa, through the sale of the business unit. In order to improve taxpayer compliance, the 2017 budget law provided for the establishment of a national lottery, involving taxpayers who make purchases of goods or services from merchants who transmit the fees electronically. To participate in the draw, taxpayers must, at the time of purchase, communicate their lottery code to the operator and the latter transmits the data of the single transfer or service to the Revenue Agency (the winnings do not contribute to the formation of the winner’s taxable income and are not subject to any tax levy and where they are used electronic payment instruments by consumers (credit cards and debit cards) there are additional rewards for both the consumer and the merchant). In this way, we try to give the final consumer a role of control by introducing a contrast of interests between the counterparties of the economic transaction. Subsequently, article 18 of decree law no. 36 of 2022 has innovated the discipline of the lottery by establishing that to participate in the draw it is necessary that natural persons of age residing in the territory of the State proceed with the purchase with electronic payment methods of which they own (which draw funds held on their credit reports or bank debts or on relationships in the name of members of their family unit certified by their family status and established prior to the date of the prize draw or who operate on the basis of a representation issued prior to the participation) and who associate the purchase with their own lottery code identified by the provision of the director of the Customs and Monopolies Agency, in agreement with the Revenue Agency. The law also provides that with one or more provisions of the director of the Customs and Monopolies Agency, in agreement with the Revenue Agency, the technical procedures of all receipt lotteries, both instantaneous and deferred, relating to extraction operations are governed, the size and number of prizes made available, as well as any other provisions necessary for the initiation and implementation of the lotteries. The rule, therefore, unlike the previous lottery regime, contemplates the possibility of introducing new and additional ones as well as any other provisions necessary for the initiation and implementation of lotteries. The rule, therefore, unlike the previous lottery regime, contemplates the possibility of introducing new and additional ones as well as any other provisions necessary for the initiation and implementation of lotteries. The rule, therefore, unlike the previous lottery regime, contemplates the possibility of introducing new and additional receipt lotteries with both instantaneous and deferred extractions, which can also be differentiated by size and the number of prizes. This measure is, among other things, a consequence of what is indicated in the Report to guide the Government’s actions aimed at reducing tax evasion from non-invoicing where it was represented that the mechanics of participating in the lottery (“to participate in the draw it is necessary that taxpayers, at the time of purchase, communicate their lottery code”) could represent a braking element (“barrier to entry”) and, therefore, a more agile validation system through a gaming APP was hoped for”.

SOURCE: cdn/AGIMEG.