The first serious client almost always turns up with the same line: “Can you send me an invoice?”. The partita IVA is the eleven-digit number the Italian Revenue Agency assigns to anyone working for themselves on a regular basis, and without it there is no invoice to send. The reassuring part is that opening a VAT number costs nothing when you file the application yourself. The real weight comes later, in contributions, taxes and annual deadlines, and it depends on three decisions: the ATECO code, the form of the business and the tax regime. Here is how to open a VAT number step by step, with the 2026 figures.
In short:
- The application to the Revenue Agency is free and is filed online. The number usually arrives the same day.
- The costs that matter are recurring ones: INPS contributions, taxes, your accountant and, for businesses, the annual chamber of commerce fee.
- Under the flat-rate scheme the substitute tax is 15%, cut to 5% for the first five years when the activity is genuinely new, with revenue up to €85,000.
- A professional without a dedicated fund pays 26.07% to the INPS Gestione separata on earnings only. Artisans and traders start from a fixed minimum.
What is a VAT number and when do you need to open one?
The partita IVA is tied to your tax code and registered with the Revenue Agency. When to open a VAT number is the question that comes before all the others. What settles it is not an income threshold but the way you work. An isolated, unrepeated piece of work stays occasional. Once the activity becomes steady and serves several clients, the number is required regardless of what you have earned.
The €5,000 figure has circulated for years as a magic threshold. It covers something else: it is the limit above which occasional fees trigger registration with the INPS Gestione separata.
Who needs to open a VAT number?
The requirements for opening a VAT number are few: legal adulthood or emancipation, a tax code, a valid ID document and an activity carried out on a continuing basis. No minimum capital is required, and no qualification either, except for professions with a register or licence. The typical profile is broader than the name suggests.
VAT number and employment: can you have both?
A VAT number and employment coexist without obstacles in the vast majority of cases. The employment contract stays valid and INPS keeps the two positions separate. The first area to check is contractual: exclusivity clauses and non-compete terms are common, so they should be read in the national collective agreement and in the offer letter.
The second is public-sector employment, where the exclusivity principle of article 53 of Legislative Decree 165/2001 applies: running a business is generally ruled out and outside assignments need authorisation from the employing administration. Part-time roles up to 50% have more room, so the check depends on the individual position. In the private sector there is one more factor: in 2026 the flat-rate scheme stays available with previous-year employment income of up to €35,000.
At what age can you open a VAT number?
The general rule is legal adulthood: at 18 a VAT number can be opened without authorisation. Before that the picture splits in two. An emancipated minor, meaning someone who has turned 16 and obtained emancipation from the guardianship judge, operates with the same rights and obligations as an adult, in any sector. A minor who is not emancipated can hold the number for artistic, intellectual, sporting or entertainment work, with the consent of parents or guardian, who remain responsible for the filings.
What do you need to open a VAT number? Requirements and documents
The list of documents for opening a VAT number is shorter than the word bureaucracy suggests: there is no file to assemble, there is a form to fill in properly. The details are needed together, though, because the declaration of commencement must be filed within thirty days of actually starting.
ATECO code: what it is and how to choose the right one
The ATECO code is the numeric label the state uses to record what you do, and it is how VAT number categories are sorted for tax and social-security purposes. Since 1 April 2025 the ATECO 2025 classification applies, replacing the 2007 version to align with the European NACE standard.
The choice carries more weight than its length suggests: the code determines the pension fund, the profitability coefficient and, in some sectors, the requirements to have in place before starting. It must describe the real activity, not the one that looks cheaper.
Choosing the form of business: freelancer or sole proprietorship
Behind a single individual VAT number sit two different routes. A freelancer carries out intellectual work, does not register with the business register and pays into the INPS Gestione separata or the fund of their professional body. A sole proprietorship VAT number covers craft and trading activities: chamber of commerce, the artisans or traders INPS scheme and often a SCIA notification to the municipality.
| Aspect | Freelancer | Sole proprietorship |
|---|---|---|
| Type of activity | Intellectual and advisory | Craft, trading, manufacturing |
| Business register | Not required | Registration compulsory |
| Social security | Gestione separata or professional fund | Artisans or traders scheme |
| Minimum contributions | None: paid as a share of income | Fixed minimum due even on low income |
| Annual chamber fee | Not due | Due every year |
Which tax regime should you choose when opening a VAT number?
Creating a VAT number does not mean a different form for every case: the type of VAT number depends on the tax regime you choose. There are two main regimes: the flat-rate scheme, designed for smaller activities, and the ordinary one, with full bookkeeping. In between sits simplified accounting, available to businesses within certain revenue limits. The right choice depends on expected turnover, real costs and the eligibility conditions.
Flat-rate scheme
This is the regime most new activities start with, and working out what a flat-rate VAT number costs helps you decide quickly. Access requires revenue of up to €85,000 in the previous year, staff and collaborator costs within €20,000 gross and no incompatible shareholdings. Taxable income does not come from revenue minus costs: a profitability coefficient set by law for each ATECO code is applied to revenue. On that income, net of contributions, you pay a substitute tax of 15%, which drops to 5% for the first five years when the activity does not continue something you were already doing.
The benefit is not only the rate: no VAT on invoices, no VAT return, and bookkeeping reduced to numbering and keeping documents. In exchange, real costs are not deductible. Here are the coefficients, unchanged in 2026.
| Activity group | ATECO codes | Coefficient |
|---|---|---|
| Food and beverage manufacturing | 10, 11 | 40% |
| Wholesale and retail trade | 45, 46.2-46.9, 47.1-47.7, 47.9 | 40% |
| Street trading in food | 47.81 | 40% |
| Street trading in other goods | 47.82, 47.89 | 54% |
| Construction and real estate | 41, 42, 43, 68 | 86% |
| Trade intermediaries | 46.1 | 62% |
| Accommodation and food services | 55, 56 | 40% |
| Professional, health and education services | 64-66, 69-75, 85, 86-88 | 78% |
| All other economic activities | every other code | 67% |
The practical rule: the profitability coefficient is not something you pick, it comes with the ATECO code. So the first thing to settle is the real activity, not the regime: with the right code the rest of the calculation follows.
Ordinary and simplified regimes
Outside the flat-rate scheme the mechanism changes. Income becomes revenue minus documented costs, and IRPEF applies to that result on a banded scale, with regional and municipal surcharges. VAT returns to invoices, with periodic settlements and an annual return. The costs of an ordinary VAT number follow the same logic: more ledgers, more deadlines, more accounting work.
Simplified accounting is the middle route, open to sole proprietorships within €500,000 of revenue for services and €800,000 for other activities. The ordinary regime pays off with high real costs or when revenue consistently exceeds the flat-rate threshold.
How to open a VAT number: step-by-step procedure
At this point, how to get a VAT number becomes a short sequence. The first two stages are decisions, the other four are filings, and they do not apply to everyone: a consultant stops at step four, a shop goes through all of them.
Write a few lines on what you will sell and to whom, then find the matching ATECO 2025 code and check whether professional requirements apply. With several activities, identify the main one: it will set the pension fund and the coefficient.
Compare your expected revenue with the €85,000 threshold and estimate your real costs. With low costs and private clients the flat-rate scheme is almost always the natural choice; with high costs the sums need redoing on the ordinary regime. The option is declared in the opening application.
The declaration of commencement is filed on form AA9/12, the one for individuals, within thirty days of starting. The VAT number request is filed online, free of charge, from your account on the Revenue Agency website or through an authorised intermediary. The VAT number arrives immediately or within a few days.
The number on its own does not complete your social-security position. Freelancers without a register join the INPS Gestione separata, regulated professionals join their category fund, and artisans and traders join the dedicated scheme.
Businesses register with the business register at the chamber of commerce. Trading, food service, crafts and personal services also require a SCIA notification to the municipal one-stop desk, which lets you start from the date of filing.
The single communication bundles the filings to the Revenue Agency, the business register, INPS and INAIL into one electronic submission. It needs a digital signature and certified email, and it applies to anyone starting a business. A freelancer uses form AA9/12 alone.
How much does it cost to open a VAT number?
It helps to separate two questions that often get mixed up. The cost of opening a VAT number covers the initial filing, and in many cases it is zero. How much a VAT number costs per year is the question that shows up in the accounts, because those costs come back every financial year.
How much does it cost to open a VAT number on your own?
For a freelancer the sum is quickly done: filing form AA9/12 carries no charge, at the counter or online. Zero euros, stamp duty included. Anyone starting a business should budget for a digital signature and certified email at a few tens of euros a year, plus secretarial fees and stamp duty at the business register.
How much does it cost to open a VAT number with an accountant?
Many practices open the position at no charge: the filing takes minutes and comes as part of the advisory relationship that starts. The figure that counts is the annual retainer: for a flat-rate taxpayer it runs between €400 and €1,200 a year, with online services at the lower end. With ordinary accounting it rises, often above €1,500 a year.
VAT number costs: which expenses to plan for each year?
The annual costs of a VAT number fall into four blocks: social security, taxes, accounting support and chamber fees. Working tools come on top, from electronic invoicing to sector software. The table sums up the recurring items for 2026.
| Item | Freelancer | Sole proprietorship |
|---|---|---|
| INPS contributions | 26.07% of income in the Gestione separata, or a professional fund | Minimum €4,521.36 artisans and €4,611.64 traders |
| Flat-rate tax | 15% or 5% on taxable income | 15% or 5% on taxable income |
| Annual chamber fee | Not due | €53 special section, €120 ordinary section |
| Accountant | From €400 to €1,200 a year on the flat-rate scheme | From €400 to €1,200, more with ordinary accounting |
| Tools | Electronic invoicing, certified email, digital signature | Electronic invoicing, certified email, digital signature, management software |
VAT number for freelancers: annual costs
For a freelancer without a professional register, social security is proportional, and in the first months that changes everything. The INPS Gestione separata rate in 2026 is 26.07% for anyone without other compulsory cover, falling to 24% for pensioners and those already in another scheme. There are no minimum contributions: low income, low payment.
VAT number for sole proprietorships: opening and running costs
A craft or trading individual VAT number starts from a fixed base, and it is worth knowing in advance. In 2026 the minimum income is €18,808, and on that base the minimum contributions work out at €4,521.36 for artisans and €4,611.64 for traders, payable in four instalments. Above the minimum the rates are 24% and 24.48%, rising to 25% and 25.48% on income over €56,224. Two reliefs exist: on the flat-rate scheme you can apply for a 35% cut in contributions, while anyone registering for the first time from 2025 can opt for a 50% discount over the first thirty-six months. The two do not stack.
Opening a VAT number: examples by type of business
A concrete VAT number example makes the picture clearer than a list of rates. Three profiles, three routes, the same first two steps.
Marketing consultant, €30,000 of revenue: opens as a freelancer on form AA9/12, coefficient 78%, so €23,400 of gross income. Contributions to the Gestione separata come to roughly €6,100, and the 5% substitute tax applies to the difference, a little over €860. No chamber of commerce, no SCIA.
Hairdresser with a salon, €45,000 of revenue: this is craft work, so ComUnica, the business register and a SCIA are needed, along with the sector qualifications. The coefficient is 67%, contributions follow the artisans scheme, and the annual chamber fee is added each year.
Clothing e-commerce, €60,000 of revenue: this falls under retail trade, with a 40% coefficient and the traders scheme. ComUnica and a SCIA are required, while stock and logistics weigh on real costs: with high purchase costs, comparing against the ordinary regime deserves a proper calculation. Handling takings, contributions and F24 tax payments from the same account cuts the time spent on admin.
Mistakes to avoid when opening a VAT number
The most common stumbles come from a step skipped at the start, not from an obscure rule. The requirements for opening a VAT number are simple: what counts is that the choices line up.
On that last point, a dedicated business account does most of the work. The Vivid account for freelancers opens online in minutes and comes with unlimited Italian IBANs and instant SEPA transfers. F24 forms are paid straight from the web app. Expenses are categorised automatically, and the built-in bookkeeping tools prepare the exports your accountant needs.
Worth remembering: the opening filing at the Revenue Agency is free for a freelancer, while the annual bill depends on the social-security scheme. In the Gestione separata you pay in proportion to income; artisans and traders start from the €18,808 minimum.
Open the account and start on the right foot
With a Vivid business account you keep business money separate, pay F24 forms online and get clean exports for your accountant. Registration is online and the Italian IBANs are unlimited, with guaranteed cashback of up to 1% on all card payments.
Frequently asked questions
How much does the first year of a VAT number cost?
The cost of opening a VAT number is strictly zero for a freelancer: form AA9/12 is filed free of charge. The first year does include contributions, substitute tax and your accountant, which together run between €1,500 and €4,000 depending on income. For artisans and traders, the annual chamber fee and the minimum contribution are added.How much money do you need to open a flat-rate VAT number?
Opening itself needs nothing: the filing is free and there is no minimum capital. The budget covers the first twelve months and depends on the social-security scheme: in the Gestione separata you pay in proportion to earnings, while artisans and traders should plan for the fixed minimum, reducible by 35% on the flat-rate scheme or by 50% for anyone registering from 2025.How much do you have to invoice under the flat-rate scheme to get €2,000?
It depends on the profitability coefficient of the ATECO code you pick when opening a flat-rate VAT number. For a consultant at 78%, with the 5% rate and the Gestione separata at 26.07%, you need roughly €2,600 of monthly invoicing to reach about €2,000 net, a little over €31,000 a year. With a lower coefficient the required turnover falls, but purchase costs weigh more, because they are not deductible under the scheme.How long does it take to open a VAT number?
How long it takes depends on the filing. Getting the number is the quickest part: submitting the form from your Revenue Agency account often returns it the same day, and in any case within a few working days. The rest depends on the other steps: the business register takes a few days, while a SCIA lets you start straight away.Which VAT number is the best one to start with?
There is no universally cheaper VAT number: it depends on the numbers of the business. The flat-rate scheme is the most common starting point, with a reduced rate for the first five years, no VAT on invoices and minimal bookkeeping. It pays off less with high real costs or clients who reclaim VAT.What happens if you open a VAT number and invoice nothing?
Anyone who opens a VAT number and invoices nothing still keeps a few obligations: the tax return is still filed, showing income of zero. On the social-security side, contributions to the Gestione separata are proportional, so no income means no payment, while artisans and traders owe the annual minimum. If the activity never starts, closure is filed on the same form used to open it.
This article is general information only and is not legal, tax or financial advice. Rules, prices and conditions can change at any time, and no claim to completeness or accuracy is made. Please check the current terms with the official sources, or ask a professional. Vivid Money S.A. is an electronic money institution supervised by the CSSF and is not a bank; client funds are held separately from the company’s own assets. Brands and product names mentioned belong to their respective owners.
