Direct Taxation and Digital Permanent Establishment
The growing importance of digital business models requires careful assessment of direct tax aspects, including the possible existence of digital permanent establishments or significant tax presence in foreign jurisdictions. Ciani Partners assists companies in mapping activities performed, income flows and functions allocated across entities and countries.
- Analysis of the tax qualification of income derived from e‑commerce, digital services, software licensing and other online activities.
- Assessment of whether a digital permanent establishment or significant tax presence exists in other States, based on OECD practice, double tax treaties and domestic rules.
- Design of income allocation policies among group companies, considering arm’s length principles and rules on tax base and profit allocation.
- Review of double taxation issues and identification of treaty‑based or procedural tools to mitigate them.
VAT, E‑Commerce and Special Regimes
Indirect taxation of digital models is characterised by complex VAT and e‑commerce rules, with specific regimes for digital services, distance sales, marketplaces and special schemes. Ciani Partners supports companies in correctly handling VAT obligations, choosing appropriate regimes and managing risks associated with misallocation or territoriality errors.
- Advice on the qualification of direct and indirect e‑commerce transactions, including analysis of territoriality rules and VAT application methods.
- Assistance with cross‑border B2C and B2B sales, including OSS/IOSS schemes and other simplification tools under EU law.
- Support for marketplaces and intermediation platforms in correctly applying VAT rules to transactions where the intermediary may be treated as supplier for VAT purposes.
- Review of filing obligations, invoicing procedures and periodic communications to reduce the risk of challenges and penalties.
Compliance, Tax Audits and Operational Strategies
Tax management of digital commerce requires robust compliance safeguards capable of linking IT systems, sales platforms and tax obligations. Ciani Partners assists companies in designing processes and controls that reduce the risk of errors, and in managing tax audits and disputes related to online activities.
- Design of tax compliance processes integrated with e‑commerce platforms, ERP systems and payment solutions.
- Assistance during tax audits concerning digital activities, including analysis of findings, preparation of submissions and development of defence strategies.
- Assessment of operational strategies to adapt digital business models to regulatory developments and tax authorities’ interpretative practice.
- Support in defining internal policies on pricing, promotions, contractual flows and data management for tax purposes.