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The VAT number is the tool through which self-employed workers, freelancers and companies can operate in full compliance with the Italian tax regime.

In terms of structure, the VAT number consists of an 11-digit code that uniquely identifies the taxpayer, be it a natural or legal person:

• The first 7 digits link the VAT number to the taxpayer holder
• The next 3 digits are used for territorial identification by the Revenue Agency
• The last digit is a control number

The VAT number can also coincide with the tax code, when and only if the activity is represented by a natural person.

Internationally, the abbreviation of the country of origin is placed in front of the VAT code (or VAT number): for example, Italian VAT numbers will start with the abbreviation IT followed by 11 digits.

In Italy, opening the VAT number is mandatory in all cases in which the professional or business activity is carried out on a regular and continuous basis.

Furthermore, the VAT number is required for each person who wants to issue an invoice for a good sold or a service provided. For this reason opening the VAT number is one of the fundamental steps to start a business.

Otherwise, if the activity is carried out on an occasional and non-continuous basis, or as an occasional service, it is possible to operate without a VAT number, using the withholding tax. In this case the activity in question must not be carried out for more than 30 days a year for each customer and must not continue constantly over time, and for a maximum ceiling of €5,000 gross annual revenue. For more information on one-time performance, we recommend you take a look at this article on our blog.

If, on the other hand, you wish to learn more about how to open a VAT number, you can consult our guide on how to open a VAT number or book a call with our experts, who will help you understand whether opening a VAT number is the right way for you and how do it quickly and safely with Xolo.

The costs for opening a VAT number may vary depending on the opening methods and the type of activity that will be carried out.

If your activity is predominantly intellectual, you will have to open a VAT number as a freelancer, if instead it is artisanal or commercial you will have to open a VAT number as an individual company.

To open the VAT number as a freelancer, the costs may vary depending on whether you decide to:

• open it yourself: no cost
• entrust yourself to an intermediary (such as an accountant or a CAF): in this case the registration and opening procedure will be subject to a fee

To open a VAT number as a sole proprietorship, in addition to the cost of a possible intermediary, it will be necessary to bear the following fixed costs of registering with the Chamber of Commerce:

• stamp duty: €17.50
• secretarial fees: 18€
• registration with the chamber of commerce: €44.00

For more information about the procedure for opening the VAT number, consult our blog, you will also find all the useful information on how to open a sole proprietorship. Alternatively, you can always book a free, no-strings-attached call with our experts, who will be able to give you all the tips and advice you need to open your VAT number and start your freelance career in no time!

To open the VAT number as a freelancer, you must have the following valid documents:

• Identity Card/Passport
• Social security number
• Residence permit (in the case of foreign citizens)

On the other hand, to open a VAT number as a sole proprietorship, you will also need to have a certified email address (PEC) and a digital signature (the tool for signing documents in electronic format).

For those who have decided to open the VAT number, the next and fundamental step is to identify the most suitable tax regime to join.

Currently, Italian law provides for three different tax regimes:

• flat-rate scheme: preferential taxation at 5 or 15%, simplified accounting
• simplified regime: progressive taxation up to 43%, simplified accounting compared to the ordinary regime
• ordinary regime: progressive taxation up to 43%, ordinary accounting

The substantial differences between these different regimes lie in the taxation and in the way in which taxable income is calculated.

For all those who want to start or have recently started their own business, the choice of the flat-rate scheme is undoubtedly the most convenient. To join the flat-rate scheme and access the advantages it brings (among the most relevant we mention the facilitated taxation and the VAT exemption) it is essential to meet all the necessary requirements.

In this article of our blog you will find all the information relating to the characteristics, advantages and requirements for accessing the flat-rate scheme.

But if you have further doubts about which tax regime to choose or would like more information about the requirements for joining the flat-rate regime, you can book a call with our experts.

If you want to open a flat-rate VAT number and benefit from all the advantages offered by this tax regime, you'll be happy to know that with Xolo the procedure is really very simple and fast (did you know it's also free? Not bad, right?!) .

To open your VAT number, the first step is to sign up for our service. Registration does not initially involve any commitment on your part but it is essential to start the procedure. You can also request a call with one of our experts and be guided step by step.

After registering you will simply have to follow the steps that will be indicated to you on our platform. Once you have provided us with the necessary documents and information, we will take full care of opening your VAT number.

The opening times are generally very fast but could vary according to the type of activity you will carry out:

• if the activity you are going to carry out is as a freelancer we will open your tax position in just 1-2 working days
• if the activity you are going to carry out is instead of an artisanal or commercial type (sole proprietorship), the times may vary and be a little longer, because they will depend on the Chamber of Commerce which in this case will have to deal with processing the registration and the related record.

Opening a VAT number online is a quick and easy process and in general we can say that today it represents the most practical and convenient solution.

Practical because you can do everything from the comfort of your home, without having to set foot in any office.

Convenient because it can allow for considerable savings compared to recourse to traditional intermediaries (accountant, CAF).

With Xolo, for example, the cost of opening and registering the VAT number is included in the subscription and it only takes 24 hours to start your freelance career. You will be able to open the VAT number completely online and we will take care of the entire registration process (paperwork included!). Contact and book a no-strings-attached call with our experts and find out how easy it is to be a freelancer with Xolo!

The flat-rate tax regime was designed to offer the opportunity to start an independent business at particularly favorable conditions to all those who wish to operate independently and who possess the necessary requisites to adhere to it.

For those who decide to start their own business by opening a VAT number, this tax regime offers a series of advantages both from a fiscal and an accounting point of view.

First of all, from a tax point of view, the flat-rate regime provides for a single rate. This means that professionals who adhere to the flat-rate scheme will pay 15% of taxes on a taxable base that is calculated on a flat-rate basis and which varies according to the chosen ATECO code.

Furthermore, at an accounting level, freelancers on a flat-rate basis are not required to compile and keep accounting records (e.g. ISA, registration with INAIL or with the Company Register).