Yes. You can voluntarily switch or may be required to switch if you exceed the thresholds of the Flat-rate regime. (e.g., over €100,000 in revenue during the year)
From Flat-rate to Simplified:
- The transition between regimes occurs from one tax year to the next.
- If your taxable turnover during a Flat-rate year exceeds €85,000, you must operate under the Simplified regime starting the following year.
- If your turnover exceeds €100,000 in a Flat-rate year, you are required to switch to the Simplified regime immediately from the invoice exceeding the limit. From that point, you must comply with VAT obligations and will be subject to IRPEF taxation under the Simplified regime for the entire year, effectively losing the Flat-rate benefits immediately.
From Simplified to Flat-rate:
- If your taxable turnover in a Simplified regime year remains below €85,000, you can opt to switch to the Flat-rate regime in the following tax year.