VAT numbers, flat tax and flat-rate scheme. With the 2019 Budget law, the rules for professionals and the self-employed change again, which had already experienced important innovations in tax matters over the last few years.
From 2019, with the Maneuver registered by Lega-M5S, further changes arrive, aimed at lightening the tax burden on VAT numbers. In detail, through the measure known as “flat tax”, the Government has raised the limit on the turnover valid for joining the flat-rate regime, which guarantees a single rate of 15 per cent up to 65 euros.
So let's try to understand what are the new rules that came into force this year.
VAT numbers: what is the flat-rate regime
The flat-rate scheme was introduced by the 2015 stability law and amended the following year through the same instrument. It is a tax regime, to which professionals, even already in business, who exercise individually and those who carry out business or art activities can join. There is no age limit for membership, but there are requirements and limits in terms of turnover.
How does it work? Basically, those who adhere to this subsidized regime have the possibility of determining the taxable income by applying the profitability coefficient diversified according to the ATECO code which distinguishes the activity carried out to the revenues or fees received. After calculating the taxable amount, instead of applying the IRPEF progressive rate system to it, one uses a single rate equal to 15% which replaces income taxes, regional and municipal surtaxes and IRAP. In short, taxation takes place on the basis of a lump sum relating to the activity carried out.
VAT numbers and flat-rate regime: the new rules for 2019
The 2019 Maneuver, in articles 4, 5 and 6, reshuffles the cards for VAT numbers that adhere to the flat-rate regime, modifying the access and permanence requirements, but above all the ceiling on annual revenues. The result is what the League calls a flat tax (flat tax in Italian), which on a practical level consists in the enlargement of the audience of those who can adhere to the subsidized tax regime introduced in 2015. In other words, it is a system that provides for a fixed and non-progressive rate such as the Irpef (at 15% precisely), net of any tax deductions or deductions.
VAT numbers: the new limits for accessing the flat tax
For taxpayers who carry out business, arts or professions, the 2019 Budget law raises the previously established threshold on revenues and fees starting from 1 January this year. It will therefore be possible to join the flat-rate scheme, enjoying thereduced rate of 15% with an annual turnover not exceeding 65 thousand euros.
Teachers who give private lessons and tutoring will also be able to benefit from the 15% substitute tax.
But this is not the only novelty. Starting from 2020 (and therefore not from this year) those with an annual income between 65 thousand and 100 thousand euros will still be able to access the scheme, but the single rate rises to 20%.
Based on calculations, when fully operational (and therefore in a year's time), the new system will involve 80% of VAT numbers held by natural persons, excluding only 20% who declare an even higher turnover every year.
But let's go on with the rules: in case the activity is one startups, the rate will be equal to 5%. What happens instead to those who use the old regime of minimums at 5%? Nothing. Under 35s still under 5 years of use can continue to use this facilitated system, obviously respecting the requirements, ceilings and conditions.
VAT numbers and flat tax: the other news
In addition to extending the scope of the flat-rate regime, the 2019 Budget law abolishes the different limits relating to the ATECO code. In detail, article 4, paragraph 1, provides that "in the case of temporary exercise of activities marked by different ATECO codes, the sum of the revenues and fees for the various activities carried out is assumed". Therefore, the highest ceiling of revenues relating to the various activities is taken into consideration.
VAT numbers and flat tax: access requirements and cases of exclusion
Let's summarize: for 2019, natural persons who carry out business, arts or professions can access the flat-rate regime, provided that in the previous year we achieved revenues or received compensation not exceeding 65 thousand euros. From 2020 there is also a further threshold of 100 thousand euros with a rate of 20%. In addition to the income requirement, however, there are further stakes. Beneficiaries must not have:
- shareholdings in partnerships, associations or family businesses,
- controlling shares of Srl or joint ventures which carry out activities directly or indirectly connected with those carried out by the holder of the flat-rate scheme.
Those who carry out an activity mainly with employers with whom they have ongoing employment relationships in the 2 previous tax periods are also excluded from the subsidized regime.
VAT numbers: flat rate scheme and electronic invoice
On 1 January 2019, the electronic invoicing obligation came into force. A novelty that has sent companies and VAT numbers into turmoil. In this context, therefore, it seems appropriate to make a clarification. Those who adhere to the flat-rate scheme - even with the new thresholds - are not obliged to comply with the new rules, as are those who operate in the so-called minimum regime.
