Indirect taxes are taxes that are not directly linked to a person’s income or assets, but to individual economic transactions related to the circulation of goods and services as well as to certain legal acts and transfers of assets. Taxation does not concern income, but its use.
Indirect taxes are of central importance in day-to-day business operations, in particular in invoicing, contract drafting, as well as in real estate and cross-border transactions. They affect both pricing and the tax structuring of business transactions.
They therefore form an essential part of the Italian tax system. They cover a wide range of economic transactions and are relevant both for companies and for private individuals in numerous everyday situations.
In contrast to direct taxes (imposte dirette) such as IRPEF or IRES, which are directly linked to income or assets, indirect taxes refer to individual transactions.
Typical characteristics are:
Indirect taxes cover in particular: