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

1. Codice Fiscale — the Italian tax identification number, issued free at any Agenzia delle Entrate office
2. ATECO Code — identifies your professional activity and determines the tax calculation under the flat-rate scheme
3. Form AA9/12 — the registration form, submittable in person, online or through an accountant
4. INPS registration — must be completed within 30 days of opening
5. Chamber of Commerce registration — exclusively online, to be filed within 30 days via the regional chamber portal
6. Municipal SUAP notification — where required, to be submitted at the time of commencing the activity

Choosing the Right ATECO Code

The ATECO code is an alphanumeric classification that identifies the economic activity you carry out. Far from being a mere administrative detail, it has a direct impact on your tax bill under the flat-rate scheme: the code determines the profitability coefficient applied to your revenues to calculate taxable income. This coefficient ranges from 40% to 86% depending on the activity — picking the wrong code means paying more or less tax than you legally should, with the risk of an audit by the Agenzia delle Entrate.

To find the correct code you can consult the official ATECO classification published by ISTAT and the Agenzia delle Entrate, or rely on a professional familiar with borderline cases — situations where the same activity could fall under different codes with significantly different tax and social-security implications. For example, an IT consultant who develops bespoke software and one who provides technical support to private clients may have different ATECO codes, different profitability coefficients and different INPS obligations.

An incorrect choice, if not corrected promptly, may require filing an amended tax return and, in more serious cases, penalties for inaccurate reporting. Changing the ATECO code requires submitting a new Form AA9/12 to the Agenzia delle Entrate. Starting with the right code from day one is always the better approach.

Professional Pension Funds by Category

Social security contributions in Italy do not work the same way for every professional. Those belonging to a legally recognised professional order must pay contributions to their own category pension fund rather than to INPS. The main ones include:

• INARCASSA — the pension fund for self-employed engineers and architects
• ENPAM — the fund for doctors and dentists
• CNPADC — the fund for chartered accountants (dottori commercialisti)
• ENASARCO — for commercial agents and representatives
• INPGI — for professional journalists

Each fund operates under its own rules on rates, minimum contributions and payment schedules. Contribution rates at category funds generally range between 10% and 16% of net professional income, plus annual fixed membership fees that vary by fund.

Professionals who do not belong to a legally recognised order — such as marketing consultants, graphic designers, trainers or many other non-regulated profiles — must register with the Gestione Separata INPS (the separate management scheme). The contribution rate is 26.07% of net income, reduced to 24% for those already covered by another pension scheme, retired or simultaneously employed. Establishing which pension body you are required to join is one of the first things to clarify before opening a Partita IVA.

Mandatory Electronic Invoicing

Since 1 January 2024, electronic invoicing via the Sistema di Interscambio (SDI) of the Agenzia delle Entrate has been compulsory for all Partita IVA holders, including those on the flat-rate scheme who were previously exempt. Every invoice must be issued in the structured XML format, transmitted to the SDI and delivered to the recipient via their destination code or PEC certified email address.

In practical terms this means it is no longer possible to send plain PDF or paper invoices to other VAT-registered parties or legal entities. Several software platforms and portals are available for electronic invoicing, including the free service offered by the Agenzia delle Entrate itself. Many professionals, however, prefer integrated management platforms that combine electronic invoicing with bookkeeping, client payment tracking and digital document storage.

Invoices issued to private individuals who do not hold a Partita IVA are not mandatorily routed through the SDI, though it is possible to do so and keep everything archived digitally.

Initial Costs to Budget For

Opening a Partita IVA in Italy is in principle cost-free: submitting Form AA9/12 does not require any stamp duty or administrative fees. However, professionals who engage an accountant for the registration process will incur a professional fee that varies according to the complexity of their situation.

Beyond the opening itself, the following costs are worth factoring in from the outset:

• Chamber of Commerce registration — mandatory for artisans and traders; it involves secretarial fees and, on an ongoing basis, an annual Chamber fee
• Revenue stamp (marca da bollo) — certain documents and communications require a €16 stamp
• Electronic invoicing software — costs range from zero (the ADE portal) to a few hundred euros per year for more comprehensive solutions
• Professional liability insurance — not mandatory for all categories but strongly recommended for anyone providing services to clients; the premium varies considerably depending on the risk profile
• Minimum pension contributions — even with no income, some category funds charge a fixed annual membership fee; the Gestione Separata INPS, by contrast, has no minimum contribution floor but requires payments at the time of filing the annual tax return

Accounting for these costs during the planning phase allows you to assess the financial viability of your professional activity realistically, well before you send your first invoice.

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.

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Read also: Tax Deadlines 2026 · Italy’s Flat-Rate Tax Scheme 2025 · How to Choose an Accountant in Milan