The Partita IVA (VAT number) is the 11-digit identifier assigned by the Agenzia delle Entrate (Italian Revenue Agency) to individuals carrying out self-employed or business activities in Italy, as well as to all incorporated entities. It serves simultaneously as a VAT registration number for European Union purposes and as the primary fiscal identifier for tax filings, invoices, and dealings with public authorities.
Self-employed professionals and sole traders must open a Partita IVA before issuing their first invoice. The application is submitted to the Agenzia delle Entrate, either in person, online, or through a commercialista (tax adviser). Upon registration, the holder selects the applicable ATECO (Italian statistical activity classification) code, which determines the applicable tax regime and INPS contribution rates. Small earners may opt for the regime forfettario (flat-rate scheme), which applies a reduced substitute income tax and exempts the holder from charging VAT on invoices up to revenue thresholds set annually.
For companies operating in Italy without a local entity, understanding the distinction between an employee under a standard employment contract and a Partita IVA contractor is essential: misclassification of a subordinate worker as self-employed can result in reclassification, back-payment of all employment entitlements, and penalties.