Tax For Italian Authors

Hello.
I am young web-developer, moved to Italy 2 years ago. I would like to start selling my works on Envato, but i have some questions about taxes on Envato in Italy. I don’t also speak Italian well and because of this I tried to find someone here to get help. I have some simple questions about taxes. Can somebody here speak a little bit about taxes, please. And maybe share with me contacts of the accountant in Italy, which knows about Envato taxes.

Thanks!

Is your residence in Italy as well?

yes

Did you update the tax-form on Envato?

My questions are:

  1. Which tax regime i need for sale on Envato ? Regime Forfettario, Ditta Individuale, Lavoro autonomo ?
  2. Which ateco code i need to choose ?
  3. Which percent i will pay from my income (not about envato taxes, italian taxes) ? 5% first 5 years ? or what ?
  4. What about INPS ? It is ~26% for freelancers ? I saw someplace, that we dont need to pay INPS, if our income is under 5.000e per year, is it true ? because I’m not sure, that my income will be over 5.000e at the first year (:
  5. What is approximately price for accountant which work with Envato newbie author ?

Hope to get some info, thanks

Not yet author, would like to start

themeforest. net/user/ username /tax_information/new

Change “username” with your current ID and check the details first

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Thanks for replies.
I dont know which “Tax ID Type” need to choose in this form
I need to register like a self-employed at first, don’t I ?

You want foreign tax ID and then enter your Codice Fiscale.

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First of all, you need to get in touch with a commercialist in Italy. They will most certainly recommend you to open a partita IVA in Regime Forfettario. In this regime, as a startup (the first 5 years), you will pay only 5% tax and INPS is also reduced to 629 euro every 3 months (Normally it’s 900).

Note that Envato already deposits IVA collected on your behalf to your country so you don’t need to worry about this and since Envato is based outside the EU and you will be receiving money directly from them, you are exempt from the bureaucracies of IVA anyway. But do speak with your commercialist and also if required give them Envato’s VAT number.

Indeed, if your income is less than 5000, you only need to declare this with the revenue agency and might not need to open a partita iva but don’t quote me on this. I might be wrong. The best thing to do is talk to a commercialist first.

A good commercialist can cost you as little as 350 euro a year (normally 650+). It depends how well you search for one and most importantly where you are located.

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Thanks for replies. Of course I will ask an accountant.

But at the first I would like to have imagination about my questions, to be sure that accountant is offering me correct and profitable way. Unfortunately, I have already an unlucky experience when professionals give very unprofessional advices.
That’s the reason why I’ve asked about prices in general and contacts of a good accountant. I just don’t want somebody try to make me fool.

I would like to ask, do you think that partita iva and regime forfetario are the most profitable for the beginner? And I would really like to hear about the Ateco codes. Which codes do I exactly need for Envato ?

I would also like to know about experience with INPS in details, as long as I understood that the most part of my costs are based on it. What will be with the beginner who earns really less at the first year (I mean under 5000€). It really seems strange if I earn 3000, for example and need to pay 2500 out of it.

P.S. Excuse me for this amount of questions. I would like to make clear that I don’t look for accountants advices here. I just want to know a little bit from experience of Italian authors of Envato, from beginners (I mean there earnings) to the most professional ones.

I want to be well-informed, I want to know how does this environment, where I want to work, is made.

Of course. It’s good you ask. I wish someone told me some of this stuff when I started as well.

TIPO ATTIVITA’: 620100 - PRODUZIONE DI SOFTWARE NON CONNESSO ALL’EDIZIONE

That’s the ateco code you want. From what I’ve read myself, if you are earning less than 5k, you only need to declare it.

Note that with this ateco code, if you are in the regime forfettario, you will be paying tax only on the 67% of your net income, that’s your income minus INPS.

So say you made a net income of 10k last year, then the following year you will pay 5% tax on 6700. That’s one of the benefits of the regime forfettario.

Is it worth it? Yes it is and also because your income is traceable and you should consider getting a partita iva. The regime forfettario is preferable if you are earning less than 30k due to the tax breaks you get.

Also you can always talk to a commercialist free. I pretty much doubt they will charge you for the first consultation. Talk to as many as needed until you find the right one with the best price and when you are finally convinced that this is the route you want to take.

Good luck!

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Thank you for your reply it’s very helpful

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I studied this topic in-depth. You need ateco 62.01.00 (which means you can’t be a freelancer and you must be a company), just like @Typps said, then you have two options:

  1. Record every invoice for each sale produced from Envato with an “autofattura” on Agenzia delle Entrate. VAT exempt because Envato is collecting it for you.
  2. Record your montly payment with an “autofattura” on Agenzia delle entrate. VAT exempt because the payment is coming from Australia.

Option (2) is better than option (1), for two reasons:

  • Recording more invoices is costly. If you do everything alone without an accountant (like I do), you’ll waste 30 minutes for each “autofattura”, which would be crazy in case of items priced, for example, $2.
  • Option (1) records the full sale amount and then Envato fees as a cost to your company. As a result, your company will have higher “fatturato” when it actually is not. As a reminder, if your “fatturato” ever goes beyond EUR 400k, you will be forced to maintain “contabilità ordinaria” instead of “contabilità semplificata” and face a lot more costs.

By company I suggest a sole proprietorship (ditta individuale). If you choose SRL, SRLs you will not have “contabilità semplificata” as an option, which means that you can’t do your taxes alone and you need a “commercialista”, which means more and more costs.

Example configuration 1:

  • Impresa (ditta) individuale
  • You do your ComUnica on your own
  • You do your own taxes and invoicing
  • You also have a full time job

Yearly fixed cost for configuration 1 is ~EUR 130 (camera di commercio). Then, IRPEF, IRAP and marca da bollo EUR 2 on invoices.

Example configuration 2:

  • Impresa (ditta) individuale
  • Your “commercialista” does ComUnica, taxes and invoicing for you

Yearly fixed cost for configuration 2 is ~EUR 2000 (camera di commercio + commercialista), plus ~EUR 4k for INPS (pension - mandatory unless you are a full time employee somewhere else). Then, IRPEF, IRAP and marca da bollo EUR 2 on invoices.

Example configuration 3:

  • SRL / SRLs
  • Your “commercialista” does everything for you
  • You need busta paga to yourself or dividend distribution to withdraw money
  • Mandatory bank account to the company name

Yearly fixed cost for configuration 3 is ~EUR 4000 (camera di commercio + commercialista + deposito bilancio + bank account + buste paga), plus ~EUR 4k for INPS (pension - mandatory unless you are a full time employee somewhere else). Then, IRPEF, IRAP and marca da bollo EUR 2 on invoices.

I chose configuration 1. Hope this won’t be as much of a headache to you as it has been to me.

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Now, talking about the “variable part”. You have to pay IRPEF, IRAP, INPS and marca da bollo EUR 2 on invoices.

You have a chance to pay only 5% IRPEF if you can access “regime forfettario”, if you meet the requirements. I never met all requirements, therefore I never studied the “regime forfettario” topic. You might want to check about it.

I will now analyze the case of “regime semplificato” with “impresa individuale” (my case).

  1. My item is priced USD 99.
  2. Envato collects VAT in my place.
  3. Envato fixed fee is USD 2. USD 97 remaining.
  4. Envato exclusive variable fee is ~35%. I get USD 63 per sale from Envato.
  5. Let’s say I had 5 sales this month. That makes USD 315.
  6. I get the money on PayPal and I convert immediately to EUR ~265 today. This conversion includes PayPal’s fee.
  7. I produce an autofattura and apply a marca da bollo of EUR 2.
  8. At the end of the year, I pay IRPEF on the sale (I recommend calculating it and putting money aside). IRPEF in 2021 was zero until EUR 5000 yearly income, 23% until 15k, 27% until 28k, 38% until 55k, 41% until 75k, 43% afterwards.
  9. If you are a full time employee somewhere else, you are not required to pay INPS.
  10. If you are not a full time employee somewhere else, you must pay 27,5% INPS.

On average, if you factor in the INPS payment, you will take home EUR 27 net gain (money that are 100% yours and not owed to the government) for each USD 99 sale.

That is, if you do your taxes on your own. If you need an accountant or commercialista… good luck.

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Ah! Almost forgot about the (only) good news :grinning: If you own a company, whatever the kind (impresa / ditta individuale, SRL, SRLs), you can tax deduct items that are useful to your work!

This means that you will not pay IRPEF and INPS on: your laptop, your pens, pencils, printer, paper and anything related to your job. Everything but cell phones and cars, cell phones and cars are a complex subject that would require an extensive post.

If your company becomes your only job, you can also get tax deductible lunch coupons for each day you work, which basically lets you not pay IRPEF and INPS on some grocery shopping.

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Oh my god! You are awesome! Thank you so much

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