In this very short update article we are going to discuss the changes that will be applied to Rates and Taxation during May 2023.
There is no certain date as, due to the recent maneuvers of the Italian government, it is not possible to plan or organize the migration to the new taxation, which will be applied arbitrarily from the first moment the new threshold is reached.
This new law, introduced in the corner with 2023, stipulates that exceeding the threshold provided for the Forfeiture Regime (regime we use for current taxation), we immediately (retroactively) switch to the ordinary taxation regime (resulting in higher taxes, even on turnover prior to the change).
PLEASE NOTE: OBVIOUSLY we are not going to increase the cost of active developments, nor are we going to vary the cost of projects already evaluated. This new taxation will be internal only and managed internally, and will apply only to fees and new development
So what’s the change?
The important change, however, is in the application of VAT. The transition from the “Forfettario” Regime to the Ordinary Regime involves the application of Value Added Tax (currently 22 percent in Italy).
This fee is additional to all other basic fees, and is a charge that is applied depending on the type of client.
Clearly we realize that a 22% increase in cost is unsustainable for our customers, and in fact it will not happen.
New fees will be charged to us, and will be contingent on the type of client and type of project.
Taxation Table
The following table presents the new VAT taxation and application structure, which will come into effect at the scheduled time.
TYPE OF CUSTOMER | CURRENT SITUATION | NEW SITUATION |
Italian Companies | 19% fixed | 22% VAT |
Italian private individuals | 19% fixed flat rate | ITALIANVAT (22%) |
European private individuals and non-vies companies | 19% fixed flat rate | ITALIAN VAT (22%) |
European Companies only if registered in VIES | 19% fixed flat rate | No Variation reverse charge application |
Non-European Companies | 19% fixed flat rate | No Variation |
Non-European Individuals | 19% fixed flat rate | No Variation |
Practical Variations in Costs
Hosting and Maintenance Costs of Custom Products
Costs for hosting and maintaining customized products will not be affected by the base cost.
The only difference will be the application of 22% VAT to replace the previous 19% taxation.
Then refer to the table above to understand how the invoices received will change
EngageBot.PRO fees
EngageBot.PRO fees will be changed uniformly, with a direct shift from 19 percent taxation to 22 percent.
To cope with this increase we will add extra Bonus Credits in each of the purchasable packages.
These Bonus Credits will also be included in Cryptocurrency packages!
The total will go up to 150€ BONUS given away in the largest packages, an additional 10% discount, and if via cryptocurrency, it will be increased with 5% additional bonus credits!
PACKAGE | TOTAL BONUS CREDITS |
125 credits (€25.00 + tax) | 3 -> 5 |
250 credits (€50.00 + tax) | 7 -> 13 |
500 credits (€100.00 + tax) | 20 -> 30 |
750 credits (€150.00 + tax) | 28 -> 48 |
1250 credits (€250.00 + tax) | 45 -> 78 |
2500 credits (€500.00 + tax) | 100 -> 170 |
5000 credits (€1000.00 + tax) | 220 -> 360 |
7500 credits (€1500.00 + tax) | 335 -> 550 |
10000 credits (€2000.00 + tax) | 450 -> 750 |
Depending on the type of billing, an invoice with VAT application equal to the table above will then be issued.
Cost Hours of Operation and Maintenance
Hourly operation and maintenance costs will change to allow Staff and all developers on the team to receive the same compensation despite taxation changes.
The Applied Fee will be subject to the same changes as in Table 1 (thus application of 22% VAT)
Instead, the hourly cost basis will be varied to the following standard:
TYPE OF INTERVENTION | WITHOUT SLA AGREEMENT | WITH SLA AGREEMENT |
Standard Update that can be done during standard business hours, with free timelines (generally done within 2-4 weeks) | €50.00/hour | €35.00/hour |
Urgent Update of immediate need, taken care of within the next business day, and with urgent timelines (usually within 24-48 hours) | €80.00/hour | €50.00/hour |
CAUTION: This hourly cost is the hourly cost normally found in all quotes from 2023, so for many customers it may be the fee already currently active.
By communicating this change, we intend to inform that even for customers who have a prevenient dating from before this communication (unless special arrangements are made) the price will be adjusted to the current standard.
Clearly this DOES NOT APPLY to the following cases:
- Fixed-price quotes already in the works
- Updates already started / in process / pending
- Updates already confirmed by Client but not yet initiated
These costs will apply only to new upgrades requested, approved, or initiated after this communication
Sincerely,
Alessandro Visintainer