Can I open a VAT number under the flat-rate scheme?
Yes, if you meet the requirements of the favourable scheme. The flat-rate scheme is the favourable tax regime for individual VAT numbers with revenue or fees up to €85,000 a year. Income is determined on a flat-rate basis (applying a profitability coefficient to revenue, by activity) and you pay a substitute tax of 15%, reduced to 5% for the first 5 years of new activities meeting certain requirements. To access it you must not hold prohibited shareholdings in companies and, if you also have employment or a pension, that income must not exceed €35,000. The flat-rate scheme doesn't charge VAT and doesn't apply withholding, with simplified accounting. If you exceed €100,000 of revenue you leave the scheme immediately.
📋 The rules
- Revenue/fees up to €85,000 a year
- Substitute tax 15% (5% first 5 years of new activities)
- Flat-rate income with a profitability coefficient
- No VAT or withholding; simplified accounting
- Employment/pension income not above €35,000
🔓 Exceptions
- Shareholdings in companies or controlled firms: may preclude the scheme
- Exceeding €85,000 (but under 100,000): you leave from the following year
- Exceeding €100,000: immediate exit, with VAT and ordinary taxation
⚠️ Penalties & fines
If you exceed the thresholds or no longer meet the requirements you must leave the flat-rate scheme: over €85,000 (but under 100,000) from the following year, over €100,000 immediately, applying VAT and ordinary taxation. Not reporting the overrun or using the scheme without the requirements exposes you to audits, recovery of taxes, penalties and interest. To stay compliant, keep an eye on revenue, check the requirements each year and keep invoices and documents. To open the VAT number you register with the Revenue Agency (and, where due, with the social-security scheme).
📎 Official sources
- Revenue Agency · Favourable flat-rate scheme →
- Normattiva · Law 190/2014 (flat-rate scheme) and budget laws →
- INPS · Social-security schemes for the self-employed →
❓ Frequently asked
How much can I invoice under the flat-rate scheme?
Up to 85,000 euros of revenue or fees a year. Within this threshold you can apply the favourable scheme. If you exceed 85,000 but stay under 100,000, you leave the scheme from the following year; if you exceed 100,000, you leave immediately with VAT and ordinary taxation.
How much tax do you pay under the flat-rate scheme?
You pay a substitute tax of 15% on income determined on a flat-rate basis (applying a profitability coefficient to revenue). The rate drops to 5% for the first 5 years of new activities meeting the requirements set by the rules.
Can I have the flat-rate scheme if I already have a job?
Yes, but only if your employment or pension income from the previous year doesn't exceed 35,000 euros. Above this threshold you can't access or stay in the flat-rate scheme. Check this limit each year, besides the revenue one.
Do I have to charge VAT to clients?
No. Under the flat-rate scheme you don't charge VAT on the invoice and don't apply withholding, with simplified accounting. This makes the scheme favourable for many small activities, but it also means you can't deduct VAT on purchases.
What happens if I exceed the threshold?
It depends on the amount. If you exceed 85,000 but stay under 100,000, you lose the flat-rate scheme from the following year. If you exceed 100,000, you leave immediately in the same year, applying VAT and ordinary taxation. It's best to monitor revenue during the year.
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