If you’re under the Simplified accounting regime, your taxes aren’t calculated on a fixed percentage of your turnover. Instead, they’re based on your actual profit.
Here’s the basic formula:
Revenue (income received) – Business costs (expenses) = Taxable income
Your IRPEF (income tax) and INPS contributions are then calculated on that taxable income.
👉 This means: The lower your taxable income, the lower your taxes.
Why is it important to request invoices for your business expenses?
If you don’t have an invoice, the expense doesn’t count. Simple as that.
Requesting proper invoices helps you:
✅ Reduce your taxable income
The more documented business costs you have, the lower the profit we use to calculate your taxes.
✅ Recover VAT (when applicable)
With a valid invoice, you may be able to deduct VAT on purchases. Without it, VAT becomes a pure cost.
✅ Prove business relevance (“inerenza”)
The expense must be related to your business activity — for example: equipment, software, professional services, office rent, raw materials, etc.
What do we need from you?
To make sure we can account for your expenses correctly, please ensure we have:
- Electronic purchase invoices (always double-check that the supplier has your correct details and your Codice Destinatario).
- PDF invoices from non-Italian suppliers — these must be uploaded to your Xolo platform so we can register them properly.
If we don’t receive the invoice, we can’t include the expense.
Not sure if an expense is deductible?
Check out our guide. If you’re still unsure whether a cost can be deducted for your specific activity, just reach out — we’ll review it together 😊