What is the Flat rate scheme in Italy (Forfettario regime)?

The “regime forfettario” is a simplified tax system in Italy for people with a solo VAT number (partita IVA) who earn up to €85,000 per year.

With this system:

• Taxes aren’t calculated on your real expenses, but on a fixed percentage of your revenue (the percentage depends on your type of activity).
• You pay a lower tax rate: 15%, or 5% if it’s your first time opening a VAT number or if you meet certain conditions.
• You don’t need to add VAT to your invoices, and bookkeeping is very simple.
• But you can’t deduct most expenses, only social security contributions.