Look for Your Taxes When You are Self Employed

September 17, 2020
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Donny Raw
Posted in Finance
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The procedure for starting a sole proprietorship as a self-employed worker or a freelance activity is not complicated, but some rules must be followed and respected. For this reason it is always good to consult an accountant in order not to make mistakes.

Taxes and VAT number for freelancers

As mentioned above, the first step to take in the world of self-employment is to understand the type of contributory classification of one’s business, i.e. whether it can be classified as an individual firm or as a freelancer and secondly, to identify which sector it belongs to. . The procedures to be followed by a freelancer who is preparing to practice his profession in 2018 will be briefly discussed below.

The first doubt that generally assails the freelancer concerns the opening of the VAT number: often, in fact, the use of withholding tax is considered more convenient. However, it is frequently overlooked that the withholding tax can only be used in the case of an occasional service, i.e. only when the freelancer does not carry out her activity continuously.

For this reason, in order not to limit your profession, it is advisable to open a VAT number. Although the procedure for opening the VAT number for a freelancer is not particularly difficult, we recommend that you contact an accountant right from the start as he will be able to understand which tax regime is more suitable for the activity of the freelancer, if it will be convenient to join or less to the flat-rate scheme and, not least, in the future will be able to manage the accounting and help during the tax return.

Model AA9 / 12 and code

As was the case in previous years, the opening of the VAT number is also free for 2018: to open it just go to an office of the Revenue Agency and fill in the form AA9 / 12 or alternatively, you can carry out the procedure online. The VAT number will be released immediately. The AA9 \ 12 model consists of 4 pages and must be completed with the utmost care since even a small mistake could cause the cancellation of the practice, or a disproportionate calculation of fees payable. It is good to remember that when filling in the form AA9 \ 12 for the opening of the VAT number it are necessary to check the flat rate option, if you intend to join it. Using the tax refund calculator is important there.

The Right Compilation

The compilation of form AA9 \ 12 provides for the choice of the code, which will determine the field of activity of the new VAT number. This code, in use since 2008, is a type of classification of economic activities adopted by ISTAT, based on the existing one created by Eurostat. Choosing the right business code is of fundamental importance because of its consequences on the calculation of the taxes that the freelancer will have to pay. Therefore the code has an important role for tax purposes: from the choice and access to certain special regimes for individual activities, to the application of sector studies, from INPS and INAIL contributions, to tax obligations and so on.