After completing their studies, many young people in Italy decide to set up their own business. There are those who make this choice by vocation. Because he wants to work as a freelancer, as a self-employed person or as a small business owner.
But there are also those who, like it or not, decide to work with a VAT number. Because he can’t find a job with a fixed-term or permanent contract.
So let’s see, for those who decide to open a VAT number, when this choice is mandatory for tax purposes. And also what is the tax regime that, being more advantageous, allows you to legally pay less taxes to the Revenue Agency.
How much do you have to earn to register for VAT and what is the most advantageous tax regime to pay less taxes
In detail, and in principle, there is a threshold of revenues or annual remuneration beyond which the activity of self-employed worker can no longer be carried out without a VAT number. This threshold is equal to 5,000 euros gross per year and coincides with the legal ceiling envisaged for collaborations and for services of an occasional nature.
Over 5,000 euros gross a year is therefore the answer. How much you have to earn to register for VAT. While as regards the possibility of paying less taxes, compared to the ordinary tax regime, there is the possibility for open VAT numbers to join the so-called flat rate. So let’s see what it is. Also because to re-enter this facilitated regime, in turn, there are requirements to be respected.
How can you join the flat rate tax regime with 15% flat tax?
In particular, adherence to the flat-rate tax regime is possible at the time of opening the VAT number. But as long as the alleged annual revenues or remuneration do not exceed the threshold of 65,000 euro. Furthermore, the annual cost for dependent and ancillary work cannot exceed the threshold of 20,000 euros. Precisely to return and to maintain the flat-rate regime which, by way of substitute tax, provides for the payment of a flat tax of 15% on the taxable income. The flat tax, among other things, replaces not only the personal income tax, but also the VAT.
Furthermore, whether you are choosing the flat rate or the ordinary tax regime, remember that the VAT number can also be opened conveniently online and for free. From the website of the Revenue Agency, without the need for the support or advice of an accountant.
Deepening
How much money do you need to open a VAT number in 2022 in the ordinary and even flat-rate regime
