What is a Partita IVA?
A Partita IVA (literally "VAT number") is Italy's business registration identifier for self-employed individuals and companies. If you want to work as a freelancer, consultant, contractor, or run any kind of business in Italy, you need a Partita IVA. It's the Italian equivalent of a sole trader registration or self-employment tax number in other countries.
Unlike the codice fiscale, which is assigned to everyone, a Partita IVA is something you choose to open when you start working independently. It's an 11-digit number that identifies your business activity to the tax authorities, INPS, and your clients.
How to Open a Partita IVA
Opening a Partita IVA is free and can be done at any Agenzia delle Entrate office or submitted online through the ADE portal (requires SPID). The process involves:
- Choosing an ATECO code — a standardized classification code that describes your business activity (e.g., software development, graphic design, consulting). This matters because your ATECO code determines your "profitability coefficient" under the regime forfettario flat-rate regime.
- Selecting a tax regime — typically the forfettario flat-rate regime for new freelancers, or the ordinary regime for higher earners
- Submitting the opening declaration (Dichiarazione di inizio attività) to the Agenzia delle Entrate
The Partita IVA number is usually assigned the same day or within a few days.
Ongoing Obligations
Once you have a Partita IVA, your tax and administrative obligations expand significantly compared to being a simple employee:
- Issuing invoices — every payment you receive must be invoiced. Since 2024, electronic invoicing (fattura elettronica) is mandatory for all Partita IVA holders including forfettario
- Quarterly VAT filings — if you're in the ordinary regime (not forfettario), you collect and remit VAT quarterly
- Annual tax return — Modello Redditi PF, not the simpler Modello 730
- INPS contributions — either through the Gestione Separata (26.07%) or a profession-specific fund
- Accounting records — maintaining records of income, expenses, and transactions
Closing a Partita IVA
If you stop freelancing, you must formally close your Partita IVA by submitting a cessation declaration to the Agenzia delle Entrate. Failing to close it while inactive doesn't eliminate your obligations — minimum INPS contributions may still accrue, and the Agenzia delle Entrate may send inquiries if no activity is declared.
The Regime Forfettario Connection
Most new freelancers open a Partita IVA specifically to access the regime forfettario, which offers a flat 15% substitute tax (5% for the first five years of new activity) on a percentage of revenue. This dramatically simplifies accounting and reduces tax burden compared to the ordinary progressive IRPEF rates. However, eligibility requires staying under the €85,000 annual revenue threshold and meeting other conditions.