National regimes

Regime forfettario (Italy)

Regime specific to Italy

The Italian flat-rate regime for individuals with revenue up to a fixed ceiling: a substitute tax on a percentage of turnover, no VAT and simplified bookkeeping.

What Regime forfettario (Italy) means

The regime forfettario is available to Italian sole traders and professionals whose annual revenue does not exceed the statutory ceiling and who meet further conditions, such as limited spending on employees and no controlling stake in a company in the same field. Taxable income is calculated by applying a profitability coefficient that depends on the activity code to the gross revenue; actual expenses are ignored.

The resulting income is taxed with a substitute flat tax that replaces income tax, regional and municipal surcharges and IRAP, with a reduced rate for the first five years of a new activity. Forfettari do not charge VAT and do not deduct it, but since 2024 they must issue electronic invoices through SdI like everyone else. Social contributions are still due, with a possible reduction for artisans and traders. Kontevia applies the coefficient and the no-VAT invoicing rules for users in the regime.

This is a national regime of Italy. Other EU countries have their own equivalents; see small business scheme and flat-rate scheme.

Related terms

Flat-rate schemeA simplified tax regime where tax is calculated as a percentage of turnover or a fixed amount, instead of from actual profit or VAT records.FatturaPAThe Italian national e-invoice format that must pass through the SdI exchange system. Italy has run mandatory B2B e-invoicing since 2019.Small business scheme (VAT exemption)A simplification that exempts businesses under a turnover limit from charging VAT, filing regular VAT returns and deducting input tax.Sole trader (self-employed)An individual running a business in their own name with unlimited liability. The simplest legal form, taxed under personal income tax.

This entry is general information, not tax advice. Rules change; check the current position with your adviser or the tax authority of your country.

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Kontevia applies these rules for you

Rates, thresholds and e-invoicing formats come from the jurisdiction data of your country. You send the document, Kontevia books it and keeps the VAT summary ready.

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