Taxes You Need to Know in Finance (Especially If You’re Starting a Business)
— What Happens When You Start with an Idea and End Up Running an E-Commerce Store
So you have an idea.
You’ve seen Shopify ads. You’ve seen creators posting Gumroad or Etsy links.
And now you wonder:
“If I make €10, do I already have to pay taxes?”
“Do I need to register a business first?”
“Can I delay this until I’m successful?”
Let’s walk through what actually happens.
🛍️ You Want to Start an Online Store: What Happens Next?
Let’s say you want to sell something online.
You don’t know if you’ll succeed, but you want to try.
You don’t even know yet what to sell — maybe:
You make your first €1.
Now what?
🤝 You Book a Free Appointment With an Accountant
You call a local accountant, or use a free 30-minute consultation online.
They ask you a few questions:
• Are you planning to do this full-time or as a side hustle?
• Do you expect to earn more than €5,000 this year?
• Will you sell physical goods or digital products?
• Will you sell outside your country (international)?
• Will you advertise or use paid promotion?
Then they tell you this:
💡 “Technically, the moment you make income, you’re already running a business.”
Even if you make €1, your government doesn’t care how small you are.
If you earn income regularly, you're running a business — and you must report that income.
But — and this is important — the obligations vary depending on the country and revenue.
So let’s break this down.
🔍 The Most Common Legal Structures for Small Online Sellers
When starting an e-commerce business, there are a few ways to operate legally:
1. As an Individual (Informally)
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You just earn money and declare it on your personal taxes.
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Often allowed if you earn under a threshold (ex: €5,000 in many EU countries).
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Very little paperwork, but you still pay income tax.
2. As a Registered Freelancer / Sole Proprietor
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You formally register yourself with a tax ID.
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You can open a business bank account.
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You file income tax + possibly VAT.
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You can deduct costs (shipping, tools, platforms).
3. As a Company (LLC, SAS, GmbH, Ltd.)
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More complex, legal protection, better if you plan to scale.
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Pays corporate tax on profits.
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Higher costs (legal, accounting, registration).
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Needed if you plan to raise money or work with bigger clients.
🧾 What Taxes Do You Owe from Day 1?
If you sell anything online — even digital — these are the typical taxes you may owe:
| Tax Type | Description |
|---|
| Income Tax | Based on your profit (revenue - expenses). Personal or corporate. |
| VAT (Value Added Tax) | Sales tax in EU/UK. Often required even for digital goods. |
| Self-Employment Tax | If you’re not employed, you pay your own social contributions. |
| Digital Tax / Platform Withholding | Some platforms deduct tax before you get paid. |
Let’s see an example.
💸 You Sell a €20 Notion Template from Italy
You're in Italy. You sell a Notion planner to someone in Germany.
You use Gumroad.
You receive €20.
→ Gumroad collects VAT 19% (Germany’s rate):
€3.19 goes to tax.
→ Gumroad keeps a platform fee.
→ You receive, say, €15 net.
That €15 is your income.
You may need to declare it to:
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Agenzia delle Entrate (Italy’s tax agency)
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Possibly open a Partita IVA if it’s regular income
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Pay income tax and INPS (social contribution)
And you’re like:
“But it’s just €15…”
Yes. But that’s business money now.
And your country wants to know.
⚠️ What Happens If You Don’t Register?
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If you’re under the income threshold:
→ You may just get a warning or late penalty if caught.
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If you grow (past €5,000–€10,000):
→ You can be fined for not declaring business activity.
→ You might owe taxes, penalties, and interests.
→ Platforms like PayPal or Stripe may freeze your account.
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If you try to open a business later:
→ They may ask you to justify past undeclared income.
→ You may lose eligibility for startup tax regimes.
👀 So What Should You Actually Do?
“Should I register my business before making any money?”
Here’s the realistic answer:
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If you’re just testing, and will make under €3,000–€5,000 this year,
you can often operate as a casual activity and report income at year-end.
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But if you want to grow — even slowly —
you should register early and pay attention to taxes.
It protects your future, opens doors (grants, funding), and avoids future issues.
📎 Tools That Help You Stay Clean
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Gumroad or LemonSqueezy → Collect VAT automatically
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Notion or Google Sheets → Track income/expenses
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Stripe Tax → Handles sales tax if you grow
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Online accountants → Many offer setup for €100–€300
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MAACAT courses → Learn it yourself, even before hiring anyone
*If you want to learn accounting the easy way, join the MAACAT Beginner, Intermediate & Advanced Accounting Courses ➝ free accounting course
✅ At this point you’re ready to:
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Sell your first product
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Track your first euro
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Stay legally safe
But we’ve just scratched the surface.
There’s more to cover:
→ Digital platforms
→ Platform tax rules (YouTube, Etsy, Ko-fi)
→ Country-specific tax regimes (like Italy’s regime forfettario)
→ Deductions for creators, influencers, freelancers...
