VAT numbersyes to the payment in installments of the second advance payment for November. As already happened in 2023, self-employed people with a turnover of up to 170 thousand euros will be able to start paying taxes from January, with the possibility of splitting the Irpef, Ires or Irap advances by spreading the payments into five installments (the last with expires in May).
The pressure from the League – three amendments in Via Bellerio, two to the tax decree and one to the budget, for the replication of the measure introduced on an experimental basis last year – worked in the end. In recent days, the Minister of Economy Giancarlo Giorgetti had opened up the possibility of extending the deadline for payment of the second advance payment due for the 2024 tax period expiring in December.
Irpef, mockery for the middle class: upward cuts and higher marginal rates. Who loses out on their paychecks and by how much
On payment
In 2023, more than 276 thousand VAT holders chose to pay the advances in installments, of which 83,233 were subject to Irpef and 193,044 divided between minimum and flat rates. The membership produced a cash shift of approximately 600 million euros. Alberto Gusmeroli is satisfied – the president of the Productive Activities commission of the Chamber is considered the “father” of the measure – who speaks of a “great result”.
The extension of the payment of the second advance with the simultaneous possibility of installment payments from January to May 2025, explains Gusmeroli, “moves in the direction of a 360-degree simplification”. And again. «No loan to pay the deposit, no sanctions for those who fail to do so. For the second time in 50 years, taxes will not be paid in advance, but after the year has ended and the income has been earned. This is how we help thousands of SMEs, artisans, traders and freelancers.”
The proposals
As mentioned, the League presented three amendments for VAT numbers. Including one which provided for the deferment of payments also for social security and welfare contributions, which had so far been excluded, and another which aimed to broaden the range of beneficiaries to all natural persons, partnerships, joint-stock companies and associations as long as subject to the Synthetic Indicators of Fiscal Reliability (ISA). In this case the installment period would last until June 16th. Now Alberto Gusmeroli’s objective is to make the November advance payment in installments structural: «We want to extend this system to everyone, even to employees and pensioners with other incomes, and also give the possibility of paying the contributions in installments as well. ».
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Well, well, well, the Italian government is finally doing something that doesn’t completely suck. I mean, don’t get too excited, it’s not like they’re giving everyone a free gelato or anything, but still. They’ve decided to let self-employed people with a turnover of up to 170 thousand euros pay their taxes in installments. Ah, the joys of being a VAT number, am I right? (Jimmy Carr)
You know, I remember when I used to have to pay taxes on my own, back in the day. It was like trying to squeeze blood from a stone, only the stone was made of bureaucratic red tape. (Rowan Atkinson) But I digress. So, the Italian government has decided to give these hardworking entrepreneurs a break, and I say, “Bravo!” I mean, it’s not like they’re going to start paying us to work or anything, but every little helps, right? (Ricky Gervais)
And let me tell you, this is a game-changer. I mean, no more scrambling around in December, trying to scrape together enough cash to pay the taxman. Now, you can just take your time, enjoy the holiday season, and think about your taxes in January, when you’re feeling more… well, let’s say, “relaxed.” (Lee Evans)
According to the numbers, over 276 thousand VAT holders took advantage of this scheme last year, and it resulted in a cash shift of approximately 600 million euros. Yeah, that’s right, 600 million! That’s like, a lot of pasta. (Jimmy Carr)
But seriously, the president of the Productive Activities commission of the Chamber, Alberto Gusmeroli, is thrilled. He’s calling it a “great result” and says it’s part of a “360-degree simplification” of the tax system. Ah, simplification, the buzzword of every politician trying to make taxes sound sexy. (Ricky Gervais)
And what’s not to love? No loan to pay the deposit, no sanctions for those who fail to do so. It’s like they’re saying, “Hey, we trust you, self-employed people. We know you’re not all tax dodgers, so just pay us when you can.” (Rowan Atkinson) Although, let’s be real, there are probably still some tax dodgers out there. I mean, it’s Italy, after all. (Lee Evans)
But I suppose that’s the beauty of this system. It’s like a payment plan for taxes, only without the pesky interest rates and annoying collection agency calls. Although, if they started playing ‘That’s Amore’ on repeat while you were on hold, that might be worth the interest rates. (Jimmy Carr)
And the League, Italy’s right-wing party, they’re the ones who pushed for this, right? Well, I suppose even a stopped clock is right twice a day, or in this case, a right-wing party with a good idea. (Ricky Gervais)
So, what’s next? Are they going to start giving out free espresso to entrepreneurs who pay their taxes on time? A VAT number can dream, right? (Lee Evans)
But in all seriousness, this is a step in the right direction. Maybe, just maybe, Italy will become the land of love, pasta, and reasonable tax policies. A guy can dream, right? (Rowan Atkinson)
VAT Numbers Get Green Light for Installment Payments Starting January, self-employed individuals with an annual turnover of up to €170,000 can opt to pay their taxes in installments, spreading the Irpef, Ires, or Irap advances into five manageable payments, with the final installment due in May. This measure, initially introduced on an experimental basis in 2023, has been made permanent following pressure from the League.
The Ministry of Economy, led by Giancarlo Giorgetti, has officially announced the extension of the deadline for the second advance payment due for the 2024 tax period, which was initially set to expire in December. This move is expected to bring significant relief to small and medium-sized enterprises (SMEs), artisans, traders, and freelancers.
Payment Breakdown
Gusmeroli further emphasized the benefits of the installment payment system, stating, “No loan is required to pay the deposit, and there will be no sanctions for those who fail to do so. For the second time in 50 years, taxes will not be paid in advance, but after the year has ended and the income has been earned. This is how we help thousands of SMEs, artisans, traders, and freelancers.” The extension of the payment deadline to May 2025 is seen as a significant step towards achieving a 360-degree simplification of the tax payment process.
Proposed Amendments
The League presented three amendments aimed at supporting VAT numbers, including a proposal to defer payments for social security and welfare contributions, which were previously excluded. Another amendment sought to broaden the range of beneficiaries to include all natural persons, partnerships, joint-stock companies, and associations subject to the Synthetic Indicators of Fiscal Reliability (ISA). Under this proposal, the installment period would be extended until June 16th.
Alberto Gusmeroli has expressed his commitment to making the November advance payment in installments a permanent fixture, stating, “We want to extend this system to everyone, including employees and pensioners with other incomes, and also give the possibility of paying contributions in installments.” This move is expected to have a significant impact on the country’s tax landscape, providing relief to a broader range of taxpayers.
