Opening a VAT Number (Partita IVA) in 2026: Practical Guide
A Partita IVA is the starting point for anyone who wants to work as a freelancer or run a business independently in Italy. This article covers the essentials: what it is, which tax regime to choose, how to register and what it costs in 2026.
What Is a Partita IVA?
The Partita IVA is an 11-digit code that identifies you as a business or professional for tax purposes. You need one to issue invoices, work as a freelancer or run a sole-trader business.
You do not need one for occasional, one-off income below €5,000 per year — a simple receipt (ricevuta) is sufficient in those cases.
The Two Main Tax Regimes
Regime Forfettario (Flat-Rate Scheme)
The most popular option for new professionals:
- Revenue ceiling: €85,000 per year
- Tax rate: 15% on taxable income (reduced to 5% for the first 5 years if requirements are met)
- No VAT charged on invoices
- Super-simplified bookkeeping — only a sales register and issued invoices register
- INPS contributions apply: for artisans and traders, based on a minimum taxable income of €18,808, the fixed annual contribution is €4,521 (artisans) or €4,611 (traders); on income above that and up to €56,224 the rate is 24% (artisans) or 24.48% (traders); above €56,224 the rate is 25% (artisans) or 25.48% (traders). A 35% reduction may be requested. For freelancers: 26.07% (or 24% if simultaneously covered by another pension fund, employed or retired).
- Deductibility of relevant costs: not permitted except for social security contributions. Costs are determined by a flat-rate profitability coefficient linked to the ATECO code.
The ideal choice if you are starting out or have limited expenses to deduct.
Regime Ordinario (Standard Accounting Regime)
Applies above the €85,000 threshold or when you have significant deductible costs:
- IRPEF: progressive rates from 23% to 43% on net taxable income
- VAT: charged on invoices with periodic returns
- Bookkeeping: Simplified for businesses and partnerships with revenues up to €500,000 for services and up to €800,000 for other activities (commerce and crafts); Standard accounting above those thresholds and for all limited companies
- All documented expenses fully deductible
- INPS contributions apply: for artisans and traders, based on a minimum taxable income of €18,808, the fixed annual contribution is €4,521 (artisans) or €4,611 (traders); on income above that and up to €56,224 the rate is 24% (artisans) or 24.48% (traders); above €56,224 the rate is 25% (artisans) or 25.48% (traders). For freelancers: 26.07% (or 24% if simultaneously covered by another pension fund, employed or retired).
How to Open a Partita IVA: The Key Steps
- Codice Fiscale — the Italian tax identification number, issued free at any Agenzia delle Entrate office
- ATECO Code — identifies your professional activity and determines the tax calculation under the flat-rate scheme
- Form AA9/12 — the registration form, submittable in person, online or through an accountant
- INPS registration — must be completed within 30 days of opening
- Chamber of Commerce registration — exclusively online, to be filed within 30 days via the regional chamber portal
- Municipal SUAP notification — where required, to be submitted at the time of commencing the activity
Why Work with an Accountant
Choosing the wrong ATECO code, missing the INPS registration deadline or using the wrong tax regime can cost significantly more than an accountant’s fee. A local commercialista handles the entire registration, recommends the right setup for your situation and manages deadlines year-round.
Studio CITI snc has been assisting professionals and businesses in Milan since 1984. Contact us to discuss your situation.
Read also: Tax Deadlines 2026 · Italy’s Flat-Rate Tax Scheme 2025 · How to Choose an Accountant in Milan
