How much an online shop really keeps

An e-commerce business can have growing revenue and a result that does not grow at all: returns, marketplace commissions, shipping and advertising eat the margin before it reaches tax. The tool starts from the year’s revenue, rebuilds the account down to the result before tax, and then answers two practical questions: which tax regime leaves the most money to whoever runs the business, and whether sales to consumers in other EU countries mean you must follow the customer’s country VAT.

Contribution margin and advertising

The contribution margin is what is left of net revenue after the cost of goods sold, commissions and the shipping you pay. It shows how much you can spend on advertising without losing money: the return on advertising, that is revenue divided by spend, must exceed the inverse of the margin. With a 40% margin, for example, break-even is at 2.5.

Flat-rate regime, sole trader or company

The Italian flat-rate regime (regime forfettario) calculates income by applying a coefficient to revenue, without deducting actual costs, and taxes the result with a substitute tax, lower in the first five years of activity. It is available up to a revenue threshold. If costs are high, flat-rate income can exceed real profit. A sole trader under the ordinary regime pays INPS contributions and personal income tax on the actual result. A company pays corporate income tax (IRES) and regional tax (IRAP) and, if it distributes profit to its shareholders, a substitute tax on dividends. The comparison is an order of magnitude, not advice.

VAT on sales to other EU countries

Up to €10,000 a year of distance sales to consumers across the EU, calculated net of VAT, Italian VAT applies. Once the threshold is crossed, in the current or the previous year, VAT is that of the customer’s country. To avoid registering in every country you can join the OSS, the one-stop shop: one quarterly return to the Revenue Agency, due by 30 April, 31 July, 31 October and 31 January, filed at zero even when there are no sales. Payment is by bank transfer or direct debit, not by F24. Shipping charged to the customer follows the same VAT as the goods.

Goods imported from non-EU countries

For consignments of imported goods worth less than €150 there is a dedicated regime, the IOSS. Above that value it does not apply.

Where the data comes from

OSS thresholds, deadlines and rules are those published by the Italian Revenue Agency. Personal income tax, corporate income tax, IRAP, dividend and traders’ INPS contribution rates come from the firm’s data archive, with source and verification date. The VAT rate of the destination country is a reference value you can change: each country’s rates are in the European Commission database.

Frequently asked questions

Do I need to join the OSS if I sell little abroad?

Up to the €10,000 threshold you can stay with Italian VAT; the OSS is still an option. Beyond the threshold VAT must be charged at the customer’s country rate.

How is the €10,000 threshold calculated?

On the yearly total, net of VAT, of distance sales to consumers in all other EU countries. The current and the previous year both count.

Is the flat-rate regime always better for an online shop?

No. Flat-rate income is calculated on revenue, not on the result: with low margins or high advertising costs it can cost more than an ordinary regime.

Does the tool replace my accountant?

No. It is an estimate from the figures you enter: other income, deductions and how the business is actually run change the comparison.