Taxes in Italy
The legal forms open to selling the console from Italy, how each is taxed,
and the traps for a product with high costs per unit. The figures live in
scripts/business/tax_it.yaml; this page explains them. Each entry has a
checked date and a verified flag. The /fiscal-italy skill re-checks
every unverified entry, and every entry older than 12 months, against the
sources before a forecast is used.
Status
Parameters written on 2026-10-15 from the laws below, not yet verified against the 2026 texts. The final choice of form is made with a commercialista.
The three forms
| Sole trader, forfettario | Sole trader, ordinary | SRL / SRLS | |
|---|---|---|---|
| Law | L. 190/2014 c. 54-89 | TUIR (IRPEF) | TUIR (IRES), D.Lgs. 446/1997 (IRAP) |
| Revenue limit | 85 000 EUR (above 100 000 out in the same year) | none | none |
| Income tax | substitute tax 5% first 5 years (new activity), then 15% on revenue × coefficient | IRPEF progressive on real profit: 23% / 33% / 43% + regional and municipal surcharges | IRES 24% + IRAP ~3.9% on the company's profit; 26% on dividends paid to the owner |
| Real costs deductible | no: revenue × coefficient (40% online retail, 67% other activities) | yes | yes |
| VAT | none charged; input VAT is not recovered | 22% charged, input VAT recovered | 22% charged, input VAT recovered |
| INPS (commercianti) | on the forfettario income, at least the minimale (~4 500 EUR/yr); optional 35% cut | on real profit, at least the minimale | working partner: at least the minimale |
| Liability | personal | personal | limited to the company |
| Running cost | low | medium | higher (bookkeeping, filings, ~2 500 EUR/yr more) |
Traps for a hardware product
- The forfettario taxes a fixed margin. With the 67% coefficient it assumes costs are 33% of revenue. A console whose parts, assembly, shipping and fees are 60-70% of the price pays tax on profit it does not make. With 40% (ATECO 47.91.10, online retail) the assumption is 60% costs: closer, but the activity has to really be retail.
- No VAT in the forfettario cuts both ways. The shelf price carries no 22%, so either the price is lower or the margin higher. But the 22% import VAT on every batch from China is a cost, not a credit.
- INPS minimale is due even at a loss. About 4 500 EUR per year from the first year, for both sole-trader forms and for a working SRL partner.
- The 85 000 EUR limit arrives fast. About 700 units at 129 EUR. Above it the ordinary regime starts the next year; above 100 000 it starts at once. The model switches the form automatically and marks those years.
- EU sales. Above 10 000 EUR per year of B2C sales to other EU states, VAT is due in the buyer's country, through the OSS scheme. How this works for a forfettario is a question for the commercialista.
- Imports. Every part comes from China, one parcel per supplier (PCBs, parts, display, battery, case). Each parcel pays the courier, a customs clearance fee (about 10-15 EUR) and 22% import VAT; the VAT is recovered except in the forfettario. Duty depends on the goods: 0% on PCBs, chips and displays, 2.7% on lithium cells, 6.5% on a plastic case, 3.7% on screws. It is waived on parcels up to 150 EUR, a rule the EU is removing. With 5 consoles per order the parcels cost about 27 EUR per console; with 50 about 5 EUR. Table: Business plan.
- Boards assembled in China do not pay more duty. A bare PCB, its parts and an assembled board for a console are all at 0% duty (to confirm with the broker). The import VAT follows the declared value, which now includes JLCPCB's assembly work; at 50 boards JLCPCB's parts are cheaper than ours, so the VAT ends up about the same. PCBA also saves a parcel, since the small parts travel with the boards. Comparison: Business plan.
Questions for the commercialista
- ATECO code: manufacturing (26.40) or online retail (47.91.10), and whether assembling bought boards counts as manufacturing.
- Forfettario 5% start-up rate: does this activity qualify as new?
- Cash or accrual basis for inventory in the ordinary regime (contabilità semplificata): when is a batch deductible?
- OSS registration and EU sales as a forfettario.
- SRL vs SRLS: notary cost, minimum capital, and when an SRL becomes cheaper than a sole trader at our volumes.
- Credits and incentives: start-up and innovative SME registers, regional grants, Nuova Sabatini for equipment.
Parameters in use
The model reads scripts/business/tax_it.yaml. The year, the laws and the
check dates are in that file. The Business plan
page warns when any entry is unverified.