If you are a foreign citizen planning to open a business or to provide goods and business services in Italy, then you need to register for local VAT. In Italy, the VAT identification number is called Partita IVA and it is an 11-digit sequence that identifies a tax subject who carries out commercial or professional activity. This number is aiming at tracking his activity in order to prevent tax frauds.

All freelancers and entrepreneurs that intend to work legally and earn more than € 5.000 annually in  Italy, has to register P.IVA:

• Freelance consultants
• Online vendors
• Production of goods in Italy
• Store owners

Then if you are opening a commercial endeavor, a store, or bar, you will then have to have a different setup, and it is a much longer process.

• The forfettaria P.IVA is reserved for individuals who make less than 85,000€ a year. Under this PIVA the taxes on profit will be about 5% for the first 5 years, then 15%. On top of about 27% for INPS, your Italian pension contribuitions.
• The other Partita IVA is a Regime Ordinario. Under this PIVA, the general taxes you pay will be higher, towards 24%-43%. Then you will need to pay the pension contributions which vary according to the activity.  This type of Partita IVA also allows you to hire employees and write off some expenses.

Some specific entrepreneurs registered, such as lawyers or architects, are required to make separate annual contributions, which vary depending on the region and the activities performed. Other persons engaged in business activities must register in the Chamber of Commerce.

Once the Partita IVA is opened, self-employed workers in Italy are subject to direct taxation: taxes are paid on the declared income.

All self-employers that declare annual income more than € 25.000 in Italy must now adhere to the e-invoicing regulations, set forth by the Tax Agency’s SDI platform. The requirements consist of an electronic invoice format and mode of submission.With these standards freelancers will have their billing processes easier. Another advantage is to have transparent communication with tax authorities.

Our business experts and tax advisor (commercialista) provides personal consultations to all those people who want to open their P.Iva (VAT number): using the Italian tax system as much as possible. Our manager will choose the most suitable solution that guarantees the maximum saving of your time and money. We provide assistance in management of your P.IVA on your behalf, helping with issue of invoices, communication with tax advisor, preparation of documents for renew of permit of stay,  and preparation for a annual tax declaration.