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You handle VAT for a small business under the ordinary regime

Managing VAT in a small business

Understand e-invoicing, VAT settlement and payment and the filing duties, compute VAT and reverse extraction, the periodic settlement, the December advance and the annual balance, then issue invoices through the SdI, send the periodic settlement reports, file the annual return and pay the VAT: 11 steps.

Start here: Italian e-invoicing and the Exchange System (SdI)

Understand: e-invoicing, settlement and payment, reports and annual return

  1. Step 1 of 11
    CourseFree37 min

    Italian e-invoicing and the Exchange System (SdI)

    Who must issue electronic invoices, what separates the XML file from a PDF, and how to fill it in with the Agenzia's free web procedure, recipient code and flat-rate fields included. Then sending to the SdI, its checks, the three receipts and the issue and deduction dates that follow from them, receiving invoices and legal storage. Two modules with case studies.
  2. Step 2 of 11
    CourseFree40 min

    Calculating, settling and paying Italian VAT

    The four 2026 rates — 22, 10, 5 and 4 % — and the scorporo that takes the taxable amount out of a VAT-inclusive total. Then the monthly or quarterly settlement, with the 500,000 and 800,000 euro thresholds and the 1 % interest, payment by F24 online only and the December advance. Read with the reserve of the consolidated VAT Act (Legislative Decree 10/2026). Two modules with case studies.
  3. Step 3 of 11
    CourseFree44 min

    Reporting Italian VAT through the year

    What a small Italian business reports for VAT beyond its payments: the quarterly return of settlements and its VP lines, the December advance under the historical, forecast and analytical methods, the annual return and its exemptions, and the option for cash accounting, with its two-million threshold and three-year commitment. Two modules with case studies, 2026 rules.

Compute: VAT and reverse extraction, periodic settlement, advance, annual balance

  1. Step 4 of 11
    CalculatorFree result

    Italian VAT calculator — taxable amount, tax and total

    Italian VAT is always charged on the taxable amount, never on the total: to extract it from a VAT-inclusive price, divide by one plus the rate rather than deducting the percentage.
  2. Step 5 of 11
    CalculatorFree result

    Italian periodic VAT settlement — monthly or quarterly, amount and due date

    Most businesses settle Italian VAT monthly. Quarterly settlement is an option with turnover not exceeding 500,000 euros (services and self-employed) or 800,000 euros (other activities), but the tax due then carries a 1 % interest surcharge. A balance due below 100 euros is normally not paid but carried forward to the next period; it must nonetheless be paid by 16 November of the same year (October or third-quarter settlement) and, for the month of December, by 16 January of the following year.
  3. Step 6 of 11
    CalculatorFree result

    Italian December VAT advance (acconto IVA)

    The Italian VAT advance is 88% of the payment due for the last month or quarter of the previous year (historical method) or of the VAT you expect for the same period (forecast method), or 100% of a settlement drawn up to 20 December (analytical method). Nothing is due if it does not exceed EUR 103.29, and it is paid on an F24 form by 27 December.
  4. Step 7 of 11
    CalculatorFree result

    Italian annual VAT balance — paying in one go or in instalments

    The Italian annual VAT balance is due by 16 March, either in one payment or in equal monthly instalments falling on the 16th of each month, the last one no later than 16 December. Each instalment after the first carries 0.33 % interest per month (0.33 % on the second, 0.66 % on the third, and so on). If you defer payment to the income-tax deadline, a surcharge of 0.40 % for every month or part-month after 16 March is added first.

File: e-invoice, periodic settlement report, annual return

  1. Step 8 of 11
    FormFree15 min

    Issuing an Italian e-invoice through the Exchange System (SdI)

    Without the SdI an invoice is not issued: how to fill in the recipient code, what the SdI checks, what to do after a rejection or non-delivery receipt and which fields a flat-rate taxpayer fills in — guide, free tools and worked example.
  2. Step 9 of 11
    FormFree30 min

    Italian periodic VAT settlements report (LIPE)

    Every quarter, online, by the last day of the second following month (the second quarter by 30 September): who is exempt, how lines VP8, VP9 and VP14 are completed, how the file is signed and sent, how to correct it — guide, deadlines and worked example.
  3. Step 10 of 11
    FormFree60 min

    Italian annual VAT return (Iva and Iva base forms)

    Online from 1 February to 30 April, by the end of February if it carries the fourth quarter: who must file, who is exempt (flat-rate taxpayers for the whole year, exempt transactions), when the simplified Iva base form can be used and where options are notified — guide, deadlines and worked example.

Pay: periodic VAT

  1. Step 11 of 11
    FormFree30 min

    Paying periodic Italian VAT (Iva) with the F24

    Monthly by the 16th, quarterly with 1% interest, an advance by 27 December: who may choose quarterly settlement, how the debt is settled, when amounts below 100 euros are carried forward and which tax codes the advance uses — guide, deadlines and worked example.

The other paths

A different procedure, the same principle: the three pillars in order.

Read in Italian