According to Eurostat data, Italy is the country in the European Union that boasts the largest number of self-employed workers. A trait it shares with Greece, not unlike another factor: high public debt.
Moreover, the two states have several similarities, linked to similarities also at the level of history and culture. Among these, unfortunately, there is also the high percentage of youth unemployment: a condition that is significantly affecting the decision to start an independent profession.
Returning to the diffusion of professionals with a VAT number , it must be said that it is a contractual method that is increasingly gaining ground throughout the EU. In the Belpaese it is encouraged by conditions that are not exactly favorable for workers as for companies, where the contributory obligations weigh heavily.
To speak clearly, in Italy over 17% of citizens between 20 and 64 years of age work as self-employed, a solution that has pros and cons, but which gives many the opportunity to carry out a job often considered more rewarding.
Among the most delicate issues is the management of VAT-registered taxes and, for taxpayers under the ordinary or simplified regime, the periodic payment of VAT . In this article we analyze what it is and how to do it.
What is VAT liquidation?
So what is meant by VAT liquidation? This is an operation that affects VAT numbers and production activities in general focused on the calculation of VAT. The latter can be both credit and debit, with reference to a precise period of time.
But what is VAT? This term refers to the Value Added Tax: a form of indirect taxation that is applied for the exchange/production of goods or services.
Therefore, in calculating the VAT deduction, the amount must be equal to the value of VAT on sales by subtracting that of the VAT relating to purchases. In essence, for VAT numbers it is necessary to deduct the VAT applied on purchases made.
They are therefore all traced following the entry into force of the digital communication system. Therefore, only what is communicated can be downloaded.
The mechanism has been set up in such a way as to ensure that all the subjects of the economy contribute to the payment of the VAT but that they can at the same time recover the percentage on the purchases made.
Those with a VAT number do not necessarily find themselves in debt to the national treasury: it depends on what is the value recorded each time in the period in question in relation to the purchases made.
The debt situation is generally more frequent than the credit one. If, however, this eventuality occurs, the person has access to an amount which will then be deducted with the subsequent VAT payment.
Therefore, as already mentioned, the VAT payment obligation affects all production units that have a VAT number: in addition to workers, companies too.
How the VAT settlement works
The liquidation formula adopted by the workers depends on the accounting system set up : depending on whether it is ordinary or simplified, it can be monthly or quarterly. Therefore, for workers with an ordinary regime there is a monthly payment, for those with a simplified regime, quarterly.
In the latter case we are talking about professionals who have annual amounts of less than €400,000.00 or €800,000.00 in the case of those entities which are recognized with interest equal to 1%.
For ordinary workers, the monthly payment must be made on the 16th day of the month. For workers with a simplified regime, the 16th day of the two months following the end of the quarter should instead be considered.
In detail, here are the deadlines for those who find themselves having to pay a quarterly VAT payment:
- First quarter . The months from January to March are contemplated. The deadline is set for May 16.
- Second quarter . The months from April to June are covered. The deadline is set for August 20th.
- Third quarter . The months from July to September are contemplated. The deadline is November 16th.
- Fourth quarter . The months from October to December are contemplated. The deadline is scheduled for March 16 of the following year or February 16 in the case of special quarterly tax payers. Furthermore, it is possible to decide to implement a further deferment, arranging to pay the VAT with other taxes in relation to the tax return.
How to arrange for the VAT settlement
Let's start with how to calculate the VAT liquidation . It must be done by subtracting the "consumed" VAT from the "earned" one, to put it simply.
Therefore, there are digital invoicing programs that simplify this operation in a precise and reliable way: a valid solution also for having a forecast of how much you actually need to pay to the State from time to time with respect to your earnings.
Both in the monthly and quarterly payments, the payment of the amount must be made to the Revenue Agency through the payment of an F24 form filled in ad hoc.
The insertion of particular numerical codes is envisaged, relating to the specific period and the type of regime adopted. For the monthly settlement they range from 6001 to 6012; the last two digits indicate the month.
For the quarterly payment there are instead four codes, one for each quarter: 6031, 6032, 6033 and 6034. Then there is the code 6035, which indicates the VAT advance, or a type of payment which provides for a advance of the year-end tax.