How to open a VAT number and work online? Complete Guide

How much does it cost to open the VAT number? How to open the VAT number online? How does the flat rate scheme work? In this article, I will try to summarize everything you should know about the VAT number: a real guide to the VAT number.

When you start working as a freelancer (, or when you start working online and you start earning money, you start wondering about the opening of the VAT number.

Among the emails I receive there are frequently asked questions relating to the VAT number and the declaration of earnings received from online activities (advertising, affiliate marketing, graphics, SEO, consultancy, cam,...):

• Is opening the VAT number mandatory?
• How much does it cost to open the VAT number?
• How do I open a VAT number?
• What are the costs to be incurred for those with a VAT number?
• If I earn less than 5,000 euros a year from this activity, do I have to register for VAT?
• Is it convenient to open a VAT number in the Ordinary Regime or the Flat-rate Regime?

All recurring questions that I will try to answer in this article - guide.

Premise: I am not an accountant, a chartered accountant, or a labor consultant and I always recommend that you request personalized advice before making decisions related to the type of VAT number to open, a good accountant can recommend the best solution for your needs.

However, below I will try to provide you with a series of information based on my experience and on what I have learned while chatting with accountants and professionals in the sector.

VAT number What is it, what is it for?

It is a series of eleven numbers that uniquely (or unequivocally) identify a company or a natural person with a VAT number.

It is so-called because it serves to contribute the VAT (Value Added Tax, that is to say, an indirect tax that is applied on the added value on the exchange and production of goods and services) to the Revenue Agency.

The first seven numbers allow you to link the VAT number to the taxpayer (name and denomination), the following numbers correspond to the identifier assigned by the Revenue Office, the last number has a control function).

All self-employed workers in Italy are obliged to open a VAT number. The term self-employed person indicates an individual who offers a good or service on his own, without being in an employment relationship.

False VAT number What is it?

If a VAT number is opened to work or collaborate with a single client, it is referred to as a false VAT number or a situation in which a subordination relationship is established and not a true self-employment activity.

According to Law 92/2012, which introduced the presumption of subordinate work, in the presence of certain requirements, the services performed by a holder of a VAT number, in the absence of evidence to the contrary, are considered employment relationships.

In the event of verification or confirmation of a presumption of subordinate work, a real administrative, fiscal and contributory offense is configured, for this reason, the client is liable to sanctions and the self-employed worker is considered an employee for an indefinite period.

However, the Jobs Act introduced the possibility of extinguishing the administrative, contributory, and tax offense for employers who hire self-employed workers with a permanent employment contract with a VAT number.

How much does it cost to open a VAT number?

What are the costs of managing a VAT number? Should you rely on an accountant?

These are two more of the questions I get asked frequently. I believe that the help of an accountant who can take care of the bureaucratic and administrative part is essential, leaving the professional or freelance the time to devote himself to his work and to produce income.

An accountant will also be able to advise you which tax regime to choose for your profession: is it better the Ordinary Regime or the Flat-rate Regime? When is the case for opening an SRL? Is it better to open a sole proprietorship, or an SRLS?

My personal experience, by greatly simplifying all the procedures, paperwork, and bureaucracy, allows me to estimate, in principle, at least 3 - 4000 euros per year of expenses once the VAT number is open (for those who are in the minimum system or in the flat-rate scheme, registration with the chamber of commerce, payment of fixed, various and possible contributions).

This does not mean that it is not convenient to open the VAT number, but simply that it can be opened when a certain economic "solidity" is achieved.

Here's what my accountant, Dott. Accountant Vincenzo Romano says: Opening the VAT number is free, just go to the revenue agency alone, with all the elements already established and they will proceed with the opening (but who will be able to fill in the AA9 module alone? In a few or none, then we turn to a consultant, who usually asks for 400/500 euros upwards per year for the opening of the VAT number and bookkeeping).

If you start with a flat-rate scheme, in addition to the initial registration costs (PEC creation, SMART CARD release or digital signature, VAT number opening, registration with the chamber of commerce, INPS registration, Scia to the municipality in case of online sales, Annual fee payment during registration) you will have to face other expenses.

The other costs you talk about are variable and depend on the type of membership:

1. Registration with the CCIAA annual cost at the moment 53 euros (based on the province of registration);
2. INPS registration approximately € 3683.00 per year if you register as an artisan trader and the possibility of a 35% reduction if you opt for the flat-rate scheme (there is no obligation to have the withholding tax paid) or if you register as a professional you must register with the INPS separate management:

The first rate, intended for all those who are not insured in compulsory pension forms, in addition to the separate management, is equal to 25.72% (25% for disability, old age, and survivors, plus the additional rate of 0.72% for sickness, maternity and family unit allowance).

The second rate of 17%, for all the remaining subjects enrolled in the separate management, whether they are already retired workers or already insured with other compulsory forms of pension.

Furthermore, I would like to remind you that in the first case, there is the possibility of being able to offset the amount due to INPS, with the VAT accumulated to support the initial investment costs.

How to open a VAT number?

Often the opening of the VAT number is seen as something to be afraid of, especially.

There are therefore those who prefer to work with withholding tax (we will see it later) and those who prefer to work as a copywriter/ghostwriter/columnist with the transfer of copyright.

Alternatively, you can rely on online services such as the one offered by

Who can register for VAT?

Anyone who works as a freelancer: self-employed professionals, freelancers, artisans, traders,...

Depending on the type of VAT number that you open, there will be rules and specifications to be respected, such as the choice of the activity code.

Can I open a VAT number on my own?

Yes, you can open your VAT number by connecting to the Revenue Agency website and communicate the Start of Business within 30 days (or you can make a subsequent communication by paying a penalty): if you want to open the VAT number as a freelancer you will have to make the declaration using form AA9 / 7 and register with the Inps Separate Management.

If you are a journalist, on the other hand, your social security institution will be Inpgi2.

If you are a musician, the social security institution is Enpals.

Many professional associations or categories of professionals have their specific pension plans.

Is Separate Management Registration Mandatory?

Who must register with the INPS separate management? Is required?

Also in this case the discourse is rather reasoned. Simplifying registration, it is mandatory for self-employed workers who do not carry out activities in the form of an enterprise, for freelancers for whom there is no professional fund, and for Co.Co.Co.

The term INPS Separate Management means a pension fund created in 1995 to guarantee social security and welfare treatment for workers who, before the Dini Law, did not have any protection (see for example professionals without a social security fund)

Is the VAT number mandatory?

Those who want to start a bonds business or art and profession activity usually ask themselves whether the opening of the VAT number is mandatory or not.

There is also a category of people who, carrying out an activity occasionally, wonder if it is correct to open the VAT number or if the "Occasional Service " is sufficient.

These people, who carry out what could be called occasional self-employment are those who most need to understand whether they must necessarily open a tax position in the form of a VAT number or not.

To understand this, it is possible to make a distinction between those who want to set up on their own and create a real business, with the consequent mandatory opening of the VAT number, and those who could start the business through occasional self-employment or the occasional sale. (just think for example of individuals who decide to sell on eBay or amateurs who create blogs and monetize with AdSense or Affiliate Marketing), within certain limits.

Who must open the VAT number Mandatory?

Below is an exemplary (but not exhaustive) list of the subjects who, to carry out the profession, must therefore compulsorily open the VAT number:

• Lawyers
• Surveyors
• Doctors
• I noticed
• Psychologists
• Regulated professions
• WebMaster
• Anyone who wants to start a business

Who must not open a VAT number Obligatory?

The legal system, in this respect, often becomes the object of free interpretation, especially when it comes to activities or occasional work.

Many of the people who start working (and earning) online, in fact, often start autonomously and not professionally:

• Copywriters or Journalists
• Website or Blog Owners
• WebCammer
• SEO
• Affiliate Marketer

Summarizing and simplifying, we talk about occasional work when you do a non-continuous job and do not exceed 5,000 euros in annual earnings.

Thinking about it for a moment, if I publish advertising on my site, this will not be paid to me monthly but only when a user clicks, signs up, or purchases a product (these are the most common cases), these actions are not continuous and indeed (as in the case of sales) they happen "more or less" occasionally.

On this topic, my accountant, Dr. Vincenzo Romano, explains:

If I have to give you an accountant's answer, I can only tell you that, often the phrase of the famous 5,000 euros is used, below which you must not open the VAT number.

My answer is that from a fiscal point of view, it is not correct, as often in the online activity, there is neither the characteristic of occasionality nor of prevalence, especially if you use Adsense combined with a blog, which then represents for about 90% of the cases of those who earn online.

My advice is to put AdSense earnings on Standby and request payment only when the figures are reached that allow us to be able to bear the management costs of the P. VAT.

The same thing can therefore be said for those who work as a webcammer and carry out this activity on an ongoing basis, or for copywriters and columnists who write content daily or weekly.

As for those who earn with affiliate marketing, It is important to know that some affiliate networks, especially for non-VAT holders, carry out the Withholding down payment, that is, they help the small blogger or the site that earns little to comply with Italian laws, as they pay 20% withholding tax.

In summary, for those who do not exceed € 5000 per year in earnings, it is possible to work without opening the VAT number, while for those who exceed them it is mandatory to open the VAT number.

Occasional Performance and Habitual Work

To complete this article it is important to specify that there is often confusion between the opening of the VAT number and the threshold of income for occasional work of € 5,000.

In reality, revenues are not a benchmark that tells us when to open the VAT number and when it is possible to work on an occasional service. The concept that obliges the opening of the VAT number is the continuity of the activity carried out, even though the financial administration has never given a clear and precise definition of what is meant by habitually and continuity of the activity carried out.

What we know today is that any activity is considered to be carried out habitually and continuously when it is carried out regularly and systematically.

If you liked this article, it was useful to you or you found it interesting I ask you please to Like and Share it on Facebook, it took a long time to write it and your feedback is very important to me.

If you have any doubts or questions, leave a comment below, I'll be happy to answer you or have a professional answer them!

Good work and good VAT number,

I am Alex Musk I am a content writer and Seo expert in sky ray ventures. KissAnime is the best website to watch anime online. Completely free. No registration required.