April 16, 2025

How to register for VAT in Italy

Registering for VAT number in Italy is an increasingly common choice for those who want to undertake a professional, commercial or artistic activity on their own. But what does it really mean to register a VAT number and how can you access tax advantages, such as the flat-rate scheme? In this article we will explore the steps to follow to register a VAT number, with a particular focus on the advantages and benefits that the flat rate scheme can offer.

What is the VAT number?

The VAT number (Value Added Tax) is a tax code used to identify individuals who carry out economic activities in Italy. Having a VAT number means that you are responsible for your own tax returns and the administration of VAT on sales or services. It is a fundamental step for those who want to work independently, without dependence on an employer.

The flat-rate scheme: a convenient option

Among the most interesting options for those wishing to open a VAT number, the flat-rate scheme is one of the most popular. Introduced by the 2015 Stability Law and subsequently amended, the flat-rate scheme was designed for small businesses and small professionals. This scheme simplifies tax procedures, reduces administrative costs and improves accounting management.

The main features of the flat-rate scheme are as follows:

  • Tax simplification: no separate VAT returns are required and complex accounting procedures, such as the recording of invoices, do not have to be carried out. It is sufficient to determine the flat-rate income applicable to one’s own activity.
  • Substitute tax: the income tax is replaced by a single substitute tax, ranging from 5% to 15%, depending on the type of activity and revenues.
  • Access limits: the flat-rate scheme is accessible only to those who do not exceed certain revenue limits, which depend on the ATECO code, and for subjects with expenses for employees less than 5,000 euros.
  • Benefits for new entrepreneurs: If you start a new business, you can benefit from a reduced substitute tax of 5% for the first 5 years, which makes this option particularly attractive to young entrepreneurs and newly established professionals.

Who can register a VAT number in Italy?

Any natural or legal person wishing to carry on an economic activity in Italy may register a VAT number. This also applies to professionals from other countries of the European Union who wish to start a business in Italy. There are no geographical limitations for European citizens who decide to move or start a business in Italy. The only requirement is that you have an Italian tax code and respect of the income limits provided for by the chosen tax system.

The advantages of a VAT registration

But what are the advantages of a VAT number? In addition to tax flexibility, working with a VAT number offers many opportunities:

  • Greater freedom and autonomy: unlike an employee, you are not bound to fixed hours or a specific location. You have total control over the management of your time and activities.
  • Economic potential: in many cases, a VAT number can lead to economic benefits, especially thanks to the possibility of deducting certain business expenses from taxes and benefiting from preferential tax rates such as 5% during the first five years of operation.
  • Growth and development: starting a business with a VAT number allows you to expand your professional horizons, both in Italy and abroad, without having to follow corporate rigidities.

How to register a VAT number in Italy

The first thing to do is register at the Income Revenue Agency. The procedure is quite simple and can also be done online through the official website. You will then have to decide whether to join the ordinary scheme or the flat-rate scheme. If you do not exceed the revenue limits and other conditions required by law, the flat rate may be the best choice. If you wish to carry on a commercial activity, you must register with the Chamber of Commerce.
Remember that, even with the flat rate scheme, you still have to keep track of your revenues, expenses and any fees paid to employees.

Registering a VAT number in Italy may seem complicated, but with the flat rate scheme it becomes an advantageous option for many. If you want more details about the flat rate and how to register a VAT number, you can visit the official website of the Revenue Agency.

If you have any questions or would like assistance in choosing the best solution for you, our team is ready to support you at every stage of the process.