🔌 Digital Platforms & Their Tax Rules
Many creators and small business owners use digital platforms to sell or earn income. But each platform has its own tax logic.
Let’s break down the major ones.
🟣 Gumroad / LemonSqueezy / Payhip
These platforms are merchant-of-record platforms. That means:
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They collect taxes (like VAT) on your behalf.
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They handle invoicing and tax receipts.
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You get a net payout, and you declare only what you earn.
Taxes you owe:
→ Income tax on your net revenue
→ Possibly VAT registration if you sell outside platforms too
🔴 YouTube (AdSense)
YouTube pays you via AdSense. But Google has strict tax rules:
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If you don’t submit a W-8BEN form, Google will withhold up to 30% of your earnings (even for non-US creators).
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After submission, if your country has a tax treaty with the US (e.g., Italy, France, India), the withholding may go down to 0–15%.
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You still need to declare this income locally.
Taxes you owe:
→ Local income tax
→ Possibly self-employment/social contributions
🟠 Ko-fi / BuyMeACoffee
These are donation platforms, often used by artists and creators.
But even if the money is framed as a "tip", it’s still taxable income.
Taxes you owe:
→ Full income tax on all donations
→ Track these like business revenue
🔵 Etsy / Shopify / Printful / Redbubble
If you sell physical goods, the platform may:
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Collect sales tax / VAT depending on region
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Ask you to provide a tax ID or business registration
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Withhold part of your earnings (ex: Etsy has automatic VAT for EU buyers)
Important: If you sell physical products, you may need:
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VAT number depending on your country and sales volume
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Customs declarations if you ship internationally
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To track cost of goods sold (COGS) for tax deductions
🌍 Country-Specific Tax Regimes
Now let’s talk about how your country affects everything.
🇮🇹 Italy – Regime Forfettario
If you’re in Italy and earn under €85,000/year, you can apply for the regime forfettario, a simplified tax regime.
Key features:
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Flat-rate tax: 5% (for new activities) or 15% (standard)
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No VAT charging or reclaiming
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You pay INPS (social contributions) separately
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You get a coefficiento di redditività (a % of your revenue is taxable, based on your activity type)
Example:
If you sell Notion templates (considered digital products), your activity code might lead to a 67% profitability coefficient.
So if you earn €10,000, only €6,700 is taxed.
→ 5% of that = €335 tax
→ + ~25% INPS = ~€1,675
→ Total = ~€2,010 tax burden
Still much lower than the regular tax regime.
🇫🇷 France – Auto-Entrepreneur / Micro-Entreprise
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If you earn less than €77,700/year (services) or €188,700 (commerce), you can register as a micro-entrepreneur.
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Pay around 22% social contributions
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No VAT until you pass a certain threshold
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Option to choose "prélèvement libératoire" (pay tax monthly)
🇩🇪 Germany – Kleinunternehmerregelung
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If you earn under €22,000/year, you may opt-out of VAT.
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You still need to declare income and file taxes.
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After that, regular VAT (19%) and complex accounting applies.
🇺🇸 USA – Sole Proprietor or LLC
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No need to register a business if you stay small
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All income must go on your Schedule C (business income)
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You owe income tax + self-employment tax (~15.3%)
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LLC offers protection but not always needed early
📉 Deductions for Creators, Freelancers, and Online Sellers
Most beginners don’t realize:
You don’t pay tax on all income — only on profit.
So you can (and should) deduct:
| Deductible Expense | Description |
|---|
| Platform fees (Gumroad, Etsy, etc.) | The % taken from each sale |
| Payment fees (Stripe, PayPal) | Transaction charges |
| Equipment (laptop, mic, tablet) | Tools used for work |
| Software (Notion, Canva, Adobe) | Subscriptions used in content creation |
| Marketing (Instagram Ads, email) | Paid promotion and tools |
| Domain & Hosting | Your website or landing pages |
| Education (courses, books) | Courses like MAACAT that help you work better |
| Home office | A % of rent/bills if you work from home (depends by country) |
These deductions can reduce your taxable income significantly.
🧠 Final Advice (For Now)
If you’re:
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Earning money online
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Using platforms like YouTube, Gumroad, Etsy
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Living in Europe or the US
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Trying to build something real
Then you are a business — and you’ll benefit a lot from learning taxes early.
You don’t need to master it all at once.
But understanding:
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What to declare
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What to deduct
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What regime to choose
…will save you thousands and help you grow stress-free.
*If you want to learn accounting the easy way, join the MAACAT Beginner, Intermediate & Advanced Accounting Courses ➝ free accounting course
