Questa è una versione PDF del contenuto. Per la versione completa e aggiornata, visita:
https://blog.tuttosemplice.com/en/gaming-earnings-job-or-hobby-what-the-law-says/
Verrai reindirizzato automaticamente...
Earning money by playing online has become much more than just a pastime. For a growing number of people, it represents a tangible source of income, ranging from a little extra cash to a full-fledged salary. This phenomenon, which combines passion and profit, raises a fundamental question: when does this activity stop being a hobby and become a full-time job? The answer is not simple and has significant legal and tax implications, especially in a context like Italy, where the work culture is deeply rooted in traditional models.
Understanding this dividing line is crucial for anyone who monetizes their video game skills, whether they are an esports player, a streamer on platforms like Twitch, or a fan of Play-to-Earn apps. Ignoring regulations can lead to penalties and disputes with the tax authorities. This article aims to clarify the regulatory aspects in Italy, analyzing the criteria that define an activity as professional and the obligations that arise from it, in an increasingly interconnected and digital European market.
Under Italian law, the distinction between a hobby and a work activity doesn’t depend on how much you earn, but on how you earn it. A hobby is an activity done for pleasure, sporadically and without organization. Any earnings, if present, are considered occasional. An activity becomes work when it takes on the characteristics of continuity, professionalism, and the organization of resources. This means that if you dedicate yourself to gaming systematically, with the primary goal of generating income and using specific tools (a high-performance PC, a stable internet connection, streaming software), your activity is considered professional in the eyes of the tax authorities.
The simplest analogy is that of someone who loves to cook. Baking a cake for a friend’s birthday is a hobby. However, if you start taking regular orders, advertising your cakes on social media, and buying professional equipment, the activity turns into a real job. The same principle applies to gaming: playing for fun is a pastime; doing it regularly to monetize through tournaments, streaming, or other forms of revenue is a professional activity.
Once you cross the hobby line, you enter the realm of tax obligations. Italian law primarily provides two frameworks for those generating income from non-employment activities: occasional self-employment and a VAT number.
If your earnings are sporadic and do not come from a continuous activity, you can use the occasional self-employment regime. This regime is applicable for compensation not exceeding €5,000 gross per year. In this case, you must issue a receipt to the client (e.g., a tournament organizer) and apply a 20% withholding tax, which the client will pay as an advance on your taxes. It’s important to note that the €5,000 limit is not a “tax-free allowance” below which you declare nothing: it is the maximum threshold for this specific regime. Exceeding this threshold triggers social security contribution obligations to the INPS ‘Gestione Separata’ (Separate Management).
The obligation to open a VAT number is not tied to exceeding an income threshold, but to the habitual and continuous nature of the activity. If you play and earn regularly, even if your revenue is initially low, you are required to open a VAT number. This step is crucial and often misunderstood. For example, a streamer who broadcasts on Twitch every week is performing a continuous activity and must have a VAT number, regardless of how much they earn from donations or subscriptions. Opening a VAT number allows you to properly account for your income, choose a tax regime (like the advantageous Flat-Rate Regime for beginners), and correctly pay taxes and contributions.
The world of “earning while playing” is diverse, and each scenario has specific tax implications. It’s useful to analyze the three most common types.
Apps that promise rewards for playing often fall into a gray area. If the earnings from apps are minimal and sporadic, they can be considered miscellaneous occasional income. However, it gets more complicated with Play-to-Earn (P2E) games that use cryptocurrencies and NFTs. In Italy, capital gains from the sale of crypto-assets are subject to taxation. This income, if received from a continuous activity, must be managed under a VAT number. For those entering this world, it is crucial to understand how to earn cryptocurrencies by playing in compliance with current regulations, which are constantly evolving.
Professional esports (electronic sports) players receive earnings from various sources: tournament prizes, salaries from their teams, and sponsorships. Tournament winnings can be classified as ‘miscellaneous income’ derived from tests of skill, as specified in Article 67 of the TUIR (Consolidated Income Tax Act). However, when a player becomes a full-time professional with contracts and sponsors, the activity becomes a full-fledged self-employment business that requires opening a VAT number. The esports market in Italy is growing rapidly, with an audience of 7.3 million viewers, and correct tax classification is essential for the sustainability of a pro-player’s career.
Streaming on platforms like Twitch and YouTube is perhaps the clearest example of a work activity. A streamer who broadcasts regularly, builds a community, and earns revenue from subscriptions, donations, advertising, and sponsorships is performing a continuous and organized activity. Therefore, they are required to open a VAT number from the beginning. The lack of specific regulations for these new digital professions does not exempt them from general tax obligations. It is also important to be aware of the risks, learning how to recognize scam apps that promise easy money but hide pitfalls.
In a country like Italy, the perception of ‘work’ is often tied to traditional concepts: an office, fixed hours, an employer. New digital professions, like that of a gamer or streamer, disrupt these paradigms, sometimes generating skepticism. This cultural view clashes with an undeniable economic reality: the global video game market is a multi-billion dollar industry, and the professions associated with it are increasingly legitimized.
The challenge for Mediterranean culture is to integrate these new forms of work, recognizing their economic and professional value. For the new generations, earning money by playing is not a bizarre idea but a concrete career opportunity that combines passion, technological expertise, and entrepreneurial spirit. The law, albeit at its own pace, is adapting. The important thing is that those who embark on these paths do so with awareness, understanding that the innovation of professions does not mean the absence of rules, but the need to apply existing ones to new contexts.
Ultimately, earning money by playing can be a hobby or a job depending on how the activity is carried out. The dividing line is drawn by continuity and professionalism, not by the amount of earnings. If the activity is habitual and organized, opening a VAT number becomes a mandatory step to operate legally and build a sustainable career.
The Italian regulatory landscape, although not always specific to the gaming sector, provides the tools for proper tax classification. Ignoring these aspects can turn an opportunity into a risk. For those who want to turn their passion for video games into a profession, it is essential to get informed and, if necessary, rely on a tax consultant to navigate the complexity of regulations and focus on what they do best: playing and maximizing profits.
Earning money from gaming becomes a job when the activity is carried out in a continuous, habitual, and organized manner. There is no fixed earnings threshold, like €5,000, that automatically determines the transition from hobby to job. The main criteria are the regularity and professionalism with which the activity is conducted, for example, by systematically participating in tournaments, having stable collaborations with teams, or receiving regular income from streaming and sponsorships.
Yes, earnings from online gaming must be declared. The method depends on the source of the winnings. If you play on platforms authorized in Italy (with an ADM license), the taxes are already withheld at the source by the operator, who acts as a withholding agent, and you do not need to include them in your tax return. However, if the earnings come from unauthorized foreign platforms, they must be included in your tax return as ‘miscellaneous income’ (Quadro RL of the Modello Redditi) and taxed according to IRPEF brackets.
The obligation to open a VAT number arises when the gaming activity becomes habitual and continuous, going beyond the nature of an occasional hobby. This is the case for pro-gamers who regularly participate in tournaments, streamers who consistently monetize their channels, or those with sponsorship contracts. Individual tournament winnings, if occasional, can be handled as ‘miscellaneous income,’ but a structured activity requires opening a VAT number.
Failing to declare earnings, especially those from unauthorized foreign platforms, carries significant risks. The Italian Revenue Agency (Agenzia delle Entrate) can conduct bank audits and challenge the failure to declare. Administrative penalties can range from 90% to 180% of the evaded taxes, plus default interest. In more serious cases, if certain evasion thresholds are exceeded, you could also face criminal charges.
Occasional winnings from esports tournaments are considered ‘prizes from tests of skill’ and fall into the category of ‘miscellaneous income’ under Art. 67 of the TUIR. They must therefore be declared in the Modello Redditi (line RL15) and are subject to IRPEF taxation on the gross amount of the winnings. If the activity of participating in tournaments becomes professional and habitual, the earnings contribute to self-employment income and require opening a VAT number.