I often see debates about whether it’s possible to sell something without officially starting a business. If you’re reading this, you’re likely involved in programming… and you know the uncomfortable feeling when someone casually says they’ve “written a program for Excel.” A similar reaction occurs among accountants when you mention selling without a VAT number, as “selling” to them is a technical term referring to the transfer of goods or services in exchange for money. The simple answer to this question is: “NO!” However, if we adopt a more informal perspective, then the answer changes—yes, it’s possible.
To understand this, we need a bit of context. In Italy, and many other countries, governments have implemented various systems to ensure people are taxed in a (presumably) fairer way. I’ve often heard people claim that VAT (IVA in Italian) only exists in Italy. While it’s true that other countries may have different names for it, most have a similar system in place. The purpose of VAT is to tax people who spend more, assuming they are generally wealthier. Since VAT is a percentage of the price of goods or services, higher-quality products (or those marketed as such) incur higher taxes, even if the rate is the same across the board. It’s essential to remember that the VAT on a product is always paid by the final consumer. In our case, since we’re talking about video games, VAT will always be paid by the players.
With this in mind, we can ask: who can sell, in general? The simple answer is: “Anyone who can issue an invoice!” This refers to someone who is legally registered as a business, possibly a sole proprietorship. An invoice is the document through which the seller declares the transfer of goods and/or services in exchange for money, and also confirms that the required VAT has been collected, to be paid later to the relevant authorities, typically a government tax agency.
Based on this, it’s clear that without a registered business and VAT number, you cannot sell directly to the end user. However, you can still sell indirectly! How? This is where a publisher comes into play.