Introduction

Opening a VAT Number is an essential step for anyone looking to start a business in Italy, whether as a freelancer or an entrepreneur.

This fiscal tool not only identifies the taxpayer for the Italian Revenue Agency (Agenzia delle Entrate) but also enables individuals and companies to operate in full compliance with Italian regulations.

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1. What is a VAT Number?

1.1 Definition and Purpose of a VAT Number

A VAT Number is an 11-digit identification code issued by the Agenzia delle Entrate to individuals or entities conducting regular and continuous economic activities. It allows businesses to:

• Issue proper invoices for their services or products;

• Pay the required taxes;

• Deduct expenses related to their business activity (when permitted by the chosen tax regime).

 

1.2 Who Needs to Open a VAT Number?

A VAT Number is mandatory for individuals or entities conducting habitual and non-occasional economic activities.

Key categories include:

• Freelancers (e.g., lawyers, accountants, consultants, architects);

• Artisans (e.g., carpenters, electricians, plumbers);

• Merchants (including owners of physical or online stores);

• Sole proprietors;

• Freelance professionals in marketing, design, IT, and other creative or technical fields;

• Companies (both partnerships and corporations).

 

1.3 Difference Between a VAT Number and a Tax Code

A common question is why a Tax Code (Codice Fiscale) is insufficient for professionals or businesses.

Key differences include:

• Purpose:

  • The Tax Code is automatically issued to all Italian citizens and residents for personal identification and tax purposes.

  • The VAT Number identifies individuals or entities earning income from economic activities.

• Registration:

  • The Tax Code is issued automatically at birth or upon moving to Italy.

  • A VAT Number must be specifically requested from the Agenzia delle Entrate by completing the appropriate forms.

 

1.4 Benefits and Responsibilities

Opening a VAT Number offers several advantages:

• Legality: Operate legally in the market, selling products or services without incurring penalties.

• Access to incentives and tax benefits: For example, eligibility for the simplified forfait regime.

• Flexibility: Greater control over income management and fiscal planning.

However, it also comes with responsibilities:

• Regular tax obligations: Filing income tax returns, VAT payments, INPS contributions, etc.

• Accounting compliance: Depending on the chosen regime, maintaining simplified or ordinary bookkeeping.

• Adherence to regulations: Compliance with labor safety laws, data privacy, and more.

 

2. How to Open a VAT Number

2.1 Preparing to Open a VAT Number

2.1.1 Evaluating Your Activity

Before opening a VAT Number, it’s important to define:

• Type of activity: Commerce, consultancy, craftsmanship, or regulated profession.

• Legal structure: Sole proprietorship, partnership (e.g., S.n.c., S.a.s.), or corporation (e.g., S.r.l., S.p.A.).

• ATECO Code: The classification describing the economic activity (e.g., “74.10.21 - Specialized Design Activities”).

These decisions will directly impact the choice of tax regime, taxation levels, and accounting obligations.

2.1.2 Choosing the Tax Regime

The main tax regimes in Italy include:

• Forfait Regime: Popular among freelancers and small businesses, offering simplified accounting and tax benefits for eligible individuals.

• Simplified Regime: Designed for medium-sized businesses, with fewer accounting requirements compared to the ordinary regime.

• Ordinary Regime: Mandatory for larger corporations or those exceeding specific turnover thresholds.

The choice of tax regime influences:

• Taxation: Direct taxes (IRPEF, IRES, IRAP) and indirect taxes (VAT).

• Social contributions: Payments to INPS or professional funds.

• Accounting obligations: Maintaining VAT registers, submitting tax declarations, and preparing financial statements.

2.2 Required Documentation

2.2.1 Declaration of Commencement of Activity

To open a VAT Number, you must complete the AA9/12 form (for individuals). This document includes:

• Personal or corporate information;

• A description of the activity performed;

• The corresponding ATECO code;

• The selected tax regime.

 

3. Benefits of Relying on a Professional Accountant

While it’s possible to open a VAT Number independently, partnering with a professional accounting firm, such as Studio Paci, offers numerous advantages:

• Personalized consultancy: Assistance in identifying the most suitable tax regime and guidance on deductions, amortizations, and financial planning.

• Time savings: Delegating tax and administrative procedures allows you to focus on growing your business, avoiding delays or errors.

• Risk minimization: Mistakes in accounting or compliance can lead to penalties or inspections. An experienced professional significantly reduces these risks.

 

Additionally, you’ll benefit from continuous updates on legislative changes.

 

 

FAQ on Opening a VAT Number

1. How to Open a VAT Number?
To open a VAT Number in Italy, you must submit a declaration of commencement of activity to the Agenzia delle Entrate within 30 days from the start of the business.

This can be done by completing:

• The AA9/12 form for individuals;

• The AA7/10 form for entities other than individuals.

 

Submission methods:

• Online via the telematic services of the Agenzia delle Entrate;

• In person at a local office of the Agenzia delle Entrate;

• By certified email (PEC), sending the completed form along with a copy of a valid identification document.

 

It is crucial to select the appropriate ATECO code, which identifies the type of economic activity, and the tax regime best suited to your needs, such as the forfait regime or the ordinary regime.

For precise and compliant management, you can confidently rely on Studio Paci.

 

2. Who Needs to Open a VAT Number?
Opening a VAT Number is mandatory for anyone conducting economic activities regularly and continuously, whether as a self-employed worker or as an entrepreneur.

This includes:

• Professionals (e.g., lawyers, accountants, consultants, architects);

• Artisans (e.g., carpenters, electricians, plumbers);

• Retailers (owners of physical or online stores);

• Freelancers in marketing, design, IT, and other fields;

• Companies, including partnerships and corporations.

 

For activities conducted occasionally and sporadically, a VAT Number is not required. However, it is essential to evaluate the nature of the activity to determine if it qualifies as habitual.

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3. What Documents Are Required to Open a VAT Number?
The following documents are needed to open a VAT Number:

• The AA9/12 form (for individuals) or the AA7/10 form (for entities);

• A valid identification document;

• A tax code (Codice Fiscale);

• Any additional documentation based on the nature of the activity, such as professional qualifications or specific authorizations.

 

Consulting a tax professional ensures you have all the necessary documentation and complete the forms accurately.

 

4. What Is the Difference Between a VAT Number and a Tax Code?
A Tax Code (Codice Fiscale) is an alphanumeric code used to identify individuals and residents for administrative and tax purposes.

A VAT Number, on the other hand, is an 11-digit numeric code assigned to individuals or entities conducting regular economic activities.

Key differences include:

Purpose:

• The Tax Code is used for personal identification and general tax matters.

• The VAT Number identifies business activities for taxation purposes.

Registration:

• The Tax Code is automatically issued.

• A VAT Number must be requested through the Agenzia delle Entrate.

 

5. How to Close a VAT Number?
To close a VAT Number, you must submit a declaration of cessation of activity to the Agenzia delle Entrate within 30 days of closing the business.

Steps:

• Complete the AA9/12 form (for individuals) or the AA7/10 form (for entities).

• Submit the form:

• Online via the Agenzia’s telematic services;

• In person at a local office;

• By certified email (PEC), including a copy of your ID.

• Ensure all pending tax obligations are settled before closing your VAT Number.

 

6. What Tax Regimes Are Available for a VAT Number?
In Italy, the main tax regimes for VAT holders include:

• Forfait Regime: Designed for small businesses and freelancers with simplified accounting and reduced taxation.

• Simplified Regime: Suitable for medium-sized businesses with less complex accounting than the ordinary regime.

• Ordinary Regime: Mandatory for large companies or those exceeding turnover thresholds.

• The choice of regime affects:

• Taxes: Direct (IRPEF, IRES, IRAP) and indirect (VAT);

• Social contributions: Payments to INPS or professional pension funds;

• Accounting: The extent of bookkeeping and reporting obligations.

 

7. How to Verify a VAT Number?
You can verify the validity of an Italian VAT Number through the Agenzia delle Entrate’s online service. Enter the VAT Number into the portal to confirm its status and associated details.

 

8. Can a Closed VAT Number Be Reopened?
No, a closed VAT Number cannot be reactivated.

If you need a VAT Number again, you must request a new one by following the standard opening procedure.

Steps:

• Complete the required forms (AA9/12 or AA7/10).

• Submit them within 30 days of resuming the activity.

 

9. What Are the Tax Obligations for VAT Holders?
VAT holders in Italy must:

• Issue invoices for every transaction, adhering to electronic invoicing regulations;

• Maintain VAT records for sales and purchases;

• Submit periodic VAT declarations (monthly or quarterly);

• File annual tax returns and VAT statements;

• Pay direct taxes (e.g., IRPEF, IRES) and social contributions.

 

10. How to Update VAT Number Information?
To update details associated with your VAT Number, such as activity changes or address updates:

• Complete the AA9/12 form (individuals) or AA7/10 form (entities);

• Submit it to the Agenzia delle Entrate within 30 days of the change.

 

11. Which Activities Require Opening a VAT Number?

A VAT Number is mandatory for all economic activities conducted regularly and continuously, whether by individuals or entities.

Examples include:

• Professionals: Lawyers, doctors, engineers, and consultants offering intellectual services;

• Artisans: Carpenters, electricians, and other tradespeople producing or repairing goods;

• Merchants: Retailers and wholesalers, including those operating online stores;

• Entrepreneurs: Those managing industrial or commercial activities;

• Freelancers: Providing digital or creative services, such as marketing, design, or IT.

 

For occasional or sporadic activities, a VAT Number is not required.

However, it is crucial to assess whether the activity qualifies as habitual.

 

12. How Does Electronic Invoicing Work for VAT Holders?

Electronic invoicing is mandatory for most VAT holders in Italy and involves issuing, transmitting, and storing invoices in a digital format.

Key steps:

1. Prepare the invoice: Use certified software or the Agenzia delle Entrate’s free platform to input transaction details (client information, description of goods/services, VAT rates, etc.).

2. Transmit via SDI: The invoice is sent to the client through the Sistema di Interscambio (SDI), which validates the data.

3. Store the invoice: Maintain electronic invoices in a certified digital archive for at least 10 years.

 

Freelancers in the forfait regime may be exempt under specific thresholds but should verify current regulations.

 

13. What Are the Penalties for Not Opening a VAT Number?

Failure to open a VAT Number when required can result in severe administrative and financial consequences:

• Fines: Ranging from €500 to €2,000 for failing to declare the commencement of activity;

• Recovery of unpaid taxes: With interest and penalties between 120% and 240% of the unpaid amount;

• Legal investigations: Potential tax audits for undeclared income;

• Criminal charges: For significant cases of tax evasion.

 

To mitigate penalties, individuals can opt for a voluntary disclosure procedure (ravvedimento operoso).

 

14. How to Open a VAT Number for Non-Residents in Italy?

Non-residents can open a VAT Number in Italy by following these steps:

1. Fiscal representative: Appoint a fiscal representative in Italy or register directly for VAT purposes.

2. Documents: Submit the AA9/12 form with identification and any required activity-specific authorizations.

3. Italian address: Provide an address for correspondence, often the fiscal representative’s address.

4. Registration: Follow the same process as residents via the Agenzia delle Entrate.

 

Consulting a tax professional experienced in international regulations is highly recommended.

 

15. What Are the Timeframes for Opening a VAT Number?

The process to open a VAT Number is typically quick:

• The VAT Number is assigned immediately upon submission of the declaration of activity.

• Formal confirmation may take 1–2 working days, depending on documentation completeness and administrative checks.

 

Delays may occur if additional verification is required.

 

16. How to Choose the ATECO Code for Your Activity?

The ATECO code is a classification system used to identify the nature of your economic activity in Italy.

Steps to choose the right ATECO code:

1. Analyze your business: Identify the primary and secondary activities.

2. Consult the ISTAT website: Review the official list of ATECO codes organized by sector and activity.

3. Seek professional advice: A tax consultant can help select the most suitable code and explain its fiscal implications.

 

Choosing the correct ATECO code is crucial for compliance and accessing applicable tax benefits.

 

17. What Tax Benefits Are Available for New VAT Holders?

New VAT holders in Italy can take advantage of several tax benefits:

• Forfait Regime: Offers a reduced tax rate of 15% (or 5% for the first five years) for eligible individuals.

• Deductions: Certain expenses, such as equipment purchases or professional services, may be deductible.

• Regional incentives: Specific regions offer additional benefits for startups and young entrepreneurs.

 

Always verify eligibility with a tax professional to optimize your tax position.

 

18. What Are the Requirements for Opening a VAT Number?

To open a VAT Number, the following conditions must be met:

• Be of legal age and have the capacity to enter contracts;

• Possess an Italian Tax Code (Codice Fiscale);

• Submit the AA9/12 or AA7/10 form to the Agenzia delle Entrate;

• Engage in habitual and continuous economic activities.

 

For regulated professions (e.g., lawyers, doctors), registration with the relevant professional body is mandatory.

 

19. How to Choose the ATECO Code for Your Activity?

Selecting the correct ATECO code is essential for defining your tax obligations, social security contributions, and eligibility for potential tax benefits.

Steps for choosing the ATECO code:

1. Analyze the activity: Determine your primary business focus and any secondary activities.

2. Consult official resources: The ISTAT website and the Agenzia delle Entrate offer detailed lists of ATECO codes categorized by sector.

3. Understand fiscal implications: Each code has specific requirements regarding VAT rates, tax treatments, and contribution calculations.

4. Seek professional assistance: A tax consultant or accountant can provide tailored advice to ensure compliance.

 

An incorrect ATECO code could lead to administrative complications or missed tax benefits.

 

20. What Are the Advantages of the Forfait Regime for New Professionals?

The forfait regime is a simplified tax regime designed for small businesses and freelancers.

Key advantages:

1. Reduced tax rate: A flat rate of 15% replaces other income taxes (reduced to 5% for the first five years if conditions are met).

2. No VAT obligations: Invoices do not require VAT application, simplifying compliance.

3. Simplified accounting: No need for complex bookkeeping; only basic records of income are required.

4. Lower social contributions: Eligible individuals can request a 35% reduction in INPS contributions.

This regime is ideal for new professionals with limited expenses and moderate income levels.

 

21. How Does Taxation Work for VAT Holders?

Taxation for VAT holders in Italy depends on the chosen tax regime:

• Forfait Regime:

  • A fixed tax rate of 15% (or 5% for the first five years) is applied to the taxable base, calculated by multiplying total revenue by a profit coefficient specific to the ATECO code.

  • No VAT application or periodic filings are required.

• Ordinary Regime:

  • Taxes are based on actual income, with progressive IRPEF rates ranging from 23% to 43%, plus regional and municipal surcharges.

  • VAT must be applied to transactions, reported, and paid periodically.

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22. Is It Possible to Open a VAT Number Online?

Yes, opening a VAT Number can be done entirely online through the telematic services provided by the Agenzia delle Entrate.

Steps to open a VAT Number online:

1. Register with the Fisconline or Entratel platform.

2. Complete the relevant form (AA9/12 for individuals, AA7/10 for entities).

3. Submit the form digitally, ensuring all required fields and documents are attached.

 

Alternatively, a tax professional can handle the process on your behalf for added accuracy and efficiency.

 

23. What Are the Accounting Obligations for VAT Holders?

Accounting obligations depend on the selected tax regime:

• Forfait Regime:

  • Simplified bookkeeping; only income records must be maintained.

  • Annual income declaration is required.

• Ordinary Regime:

  • Full accounting obligations, including:

    • VAT registers for sales and purchases;

    • Inventory records;

    • Periodic VAT declarations and payments;

    • Annual financial statements (for companies).

 

Proper accounting ensures compliance and avoids penalties. Engaging a professional accountant is highly recommended.

 

24. How to Manage Electronic Invoicing with a VAT Number?

Electronic invoicing is mandatory for most VAT holders in Italy, requiring invoices to be created, transmitted, and stored digitally.

Steps to manage electronic invoicing:

1. Use certified software: Generate invoices in XML format using approved tools or the Agenzia delle Entrate’s free service.

2. Transmit via SDI: Send invoices through the Sistema di Interscambio (SDI), which validates and forwards them to recipients.

3. Digital storage: Maintain invoices in a certified electronic archive for a minimum of 10 years.

 

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25. What Are the Differences Between a Freelancer and an Employee with a VAT Number?

Freelancers with a VAT Number differ significantly from employees:

• Independence: Freelancers manage their own business activities, while employees work under a supervisor.

• Taxation: Freelancers are responsible for their own tax filings and contributions, while employers handle tax withholdings for employees.

• Benefits: Employees receive benefits like paid leave, sick days, and severance pay (TFR), which are not guaranteed for freelancers.

 

Understanding these distinctions is crucial for choosing the right professional path.

 

26. How to Close an Inactive VAT Number?

Closing an inactive VAT Number is essential to avoid accumulating unnecessary tax obligations or penalties.

Steps to close a VAT Number:

1. Complete the appropriate form (AA9/12 for individuals, AA7/10 for entities).

2. Submit the form to the Agenzia delle Entrate:

   • Online via telematic services;

   • In person at a local office;

   • By certified email (PEC) with the required documents attached.

 

Ensure any outstanding tax liabilities are resolved before closing the VAT Number.

 

27. What Are the Penalties for Failing to Open a VAT Number?

Failure to open a VAT Number when required can lead to:

• Fines ranging from €500 to €2,000 for non-compliance;

• Recovery of unpaid taxes, plus penalties of 120% to 240% of the owed amounts;

• Interest on unpaid taxes, calculated from the due date;

• Potential criminal charges for significant tax evasion.

 

Regularizing your position through voluntary disclosure (ravvedimento operoso) can mitigate penalties.

 

28. How to Open a VAT Number for E-commerce Activities?

To open a VAT Number for e-commerce, follow these steps:

1. Define your business model:

   • Direct e-commerce: Selling digital products or services (e.g., software, online courses).

   • Indirect e-commerce: Selling physical goods through an online platform.

2. Select the appropriate ATECO code:

   • Example: 47.91.10 - Retail sale via the internet for indirect e-commerce.

3. VAT obligations:

   • Understand European VAT rules for cross-border transactions.

   • Register for the OSS regime for simplified VAT compliance.

4. Submit the application:

   • Complete the AA9/12 form with all necessary details and submit it to the Agenzia delle Entrate.

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