Flat rate regime: main characteristics and simplifications
The flat rate regime, we remember, was introduced with Law no. 190/2014 and represents a simplified taxation option for small businesses, artisans and individual professionals. The main requirements to access it include: revenues or compensation not exceeding 85,000 euros per year; personnel expenses not exceeding 20,000 euros.
This regime allows for a simplified accounting management and provides the payment of a single substitute taxequal to 15% of taxable income, calculated on the basis of a profitability coefficient which varies depending on the activity carried out (for the first five years of activity, the rate is reduced to 5%).
Flat rate taxpayers enjoy a number of simplifications in the VAT area. Among the main advantages:
- Exemption from charging VAT on customer invoices;
- Exemption from VAT settlement and payment obligations;
- Exemption from keeping VAT registers and submitting the annual VAT return.
Given these benefits, flat-rate users are still required to issue invoices, which from 2025 can be simplified without limits on the amount.
Simplified flat rate invoicing, current regulations
Currently, simplified invoicing is regulated by article 21-bis of Presidential Decree no. 633/1972, which establishes a limit of 400 euros for issuing this type of invoice. This ceiling, initially set at 100 euros, was subsequently raised with the 2019 decree, while maintaining the restriction for transactions exceeding 400 euros.
The simplified invoice represents a tool aimed at reduce administrative burdens for small operations. It differs from the ordinary invoice for a reduced content: among the minimum information required are the date of issuei personal data of the parties involved, the description of the goods or servicesand thetotal amount of the transaction with tax included.
Simplified invoice without limits from 2025
With the entry into force of the new legislation, taxpayers in the flat rate regime will be able to issue simplified invoices even for amounts exceeding 400 euros. This change is part of a broad process of harmonization with European regulations, implemented by Italy through the draft legislative decree that implements EU directives no. 2020/285 and n. 2022/542.
The legislative decree approved by the Council of Ministers on 7 August 2024 and currently being examined by Parliament, therefore introduces a derogation from article 21-bis of Presidential Decree no. 633/1972. Ordinary VAT numbers, however, will continue to be subject to the limit of 400 euros for the issuing of simplified invoices.
To be valid, the simplified invoice must contain some minimal elementsincluding:
- Issue date and progressive number of the invoice;
- Personal data and VAT number of the transferor and transferee;
- Description of the goods or services provided;
- The total amount and tax included, or data to calculate it.
Who can benefit from the simplified invoice without limits?
The new provisions are aimed exclusively at flat-rate taxpayers. Other taxpayers, even if subject to simplified regimes, will not be able to issue simplified invoices for amounts exceeding 400 euros.
Furthermore, it is important to point out that the simplified invoice cannot be used for some specific operationssuch as intra-community sales or reverse charge operations.