Beware Of The Internet
Recently, I read a post in an Italian expat group where a guy planned on opening a P.IVA (VAT Number) on his own and was asking for guidance on which tax regime he should be in and what could be deducted. Everyone gave feedback, much of it wrong, with one person saying that his taxes “would work out in the end”!
One of the reasons I have not had major tax issues in my 30+ years of living in Italy is because I have always had my taxes followed by savvy and up-to-date accountants. I’ve always looked for recommendations from “winners”, people who have a proven and successful track record in their area of business. I would always ask them who followed their taxes or who was their lawyer, and I would often set up meetings with these professionals in case I needed to change.
When you relocate to Italy, you must make peace with the fact that, especially as a self-employed person, you will need solid counsel when it comes to taxes. The problem with trying to piece together information from the internet and from people who are not experts includes the following:
- You get random information vs. results.
- The sequence of steps is very often out of order.
- You get conflicting information.
- Vital pieces of information are missing.
- You don’t get to ask case-specific questions like you can by sitting down with an expert.
If you don’t have a complicated tax situation, many accountants will follow your books for a forfeit yearly fee, which in many cases is more than affordable. Having problems with the Agenzia delle Entrate (Italian Tax Office) is not an experience you want in Italy—believe me!
