Basic Requirements of the Flat-Rate Scheme

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The limits of the Flat-Rate Scheme are divided into two different typologies: basic requirements and exclusion clauses, with distinct characteristics regarding the exit from the Flat-Rate Scheme for each of them.

There are four basic requirements to access the Flat-Rate Scheme:

the turnover collected by the business (also valid in the case of purchase of business from previous owner) must be less than €65,000.00. This limit also includes maternity allowances, allowances (including insurance) received and royalties, if related to the work activities of the Flat-Rate VAT Number.
compensation paid to employees, subordinates and cambodia email list occasional workers must be less than €20,000.00;
the owner must not have company shares in partnerships (ss, snc, sas), professional associations and/or family businesses;
the owner must not have shares in limited liability companies or joint ventures, only if these simultaneously:
are controlled (directly or indirectly - for example through family members) by the flat-rate owner;
carry out economic activities that are the same (in fact, regardless of the ATECO code used) or continuous with those of the Flat-Rate VAT Number.
PRO TIP
Pay attention to the turnover collected in the first year of activity: the € 65,000.00 always refers to the entire year. This means that if the VAT number is opened during the course of the year, the limit must be related to the actual days of activity, making the calculation [65,000 x days of activity : 365].

For example, if you open a VAT number on May 15 (230 days until the end of the year), for that year the turnover limit will be reduced to €40,958.90 (65,000.00 x 230 : 365).