If you wish to start an activity as a farmer, you can take advantage of specific benefits: both if you wish to work on your own or in partnership with other people.
It is a special scheme designed and enacted for this specific category.
To qualify, you must:
- be a farmer, pursuant to Article 2135 of the Italian Civil Code;
- sell your produce.
You can also sell the produce of others, but not as the main activity.
Further information on agricultural and fishery-related entrepreneurship is available in Article 2135 of the Italian Civil Code at the following link: www.altalex.com/index.php?idnot=36498.
By entering this system, you can pay the Value Added Tax (IVA) on a flat-rate basis, instead of having to comply with the regulations that apply to other forms of business.
E.g.: Let us see an example of a flat-rate scheme application. Suppose that an agricultural company sells vegetables to the amount of 5,000 euros. The VAT to be applied on this sum is 10%, amounting to 500 euros. An additional 4% rate is calculated on this amount (called compensation rate). The calculated amount of this is 200 euros and is subtracted from the previous 500: the VAT to be paid to the State is 300 euros.
In any case, nothing prevents you from adopting the ordinary VAT scheme.
Moreover, if during the year your business has achieved a turnover not exceeding 7,000 euros, you may decide not to pay VAT and you are not required to comply with the ordinary accounting and tax requirements.
You will be required simply to number and keep the documents of purchases and sales.
Keep in mind that the term "farmer" also refers to entrepreneurs carrying out business activities in the fishing sector, including freshwater, mussel, oyster and other shellfish farming.
Further information on the flat-rate scheme is available in Article 34 of Presidential Decree 633/72 (Testo IVA): www3.unisi.it/ammin/uff-ragi/Fisco/DPR633-72.htm.