Having a VAT number allows freelancers and self-employed professionals from all industries to work independently and autonomously. This way of working comes with many advantages—no boss, no fixed hours, no daily commute, and complete freedom in organizing your work and free time. But as any freelancer knows, there are also downsides, such as income unpredictability and the burden of managing your own taxes and contributions (which are automatically withheld and paid by employers for salaried workers).
For various reasons, a self-employed worker may decide—or be required—to close their VAT number (or sole proprietorship), or to update it in case of a change in their business activity. But how do you do this properly? What are the required steps? Are there any fees or deadlines to keep in mind? Let’s go through everything you need to know in this article.
Closing a VAT number: everything you need to know
To close your VAT number, you must fill out and submit a specific form—Form AA9/12 or Form AA7/10—to the Italian Revenue Agency (Agenzia delle Entrate) within 30 days of ending your business activity.
- If you're a natural person (a freelancer or sole proprietor), you must use Form AA9/12.
- If you're a non-natural person (e.g., association, company, or entity), you must use Form AA7/10.
Both forms are available on the Italian Revenue Agency website, along with instructions for proper completion.
To declare the closure of your VAT number, it's essential to tick Box 3 in Section A of the form and indicate both your VAT number and the exact date your business activity ended.
How to submit the completed form
The submission method depends on your situation:
- If you're registered with the Companies Register, you must file the form electronically via the DIRE platform, which consolidates all tax and administrative requirements related to the business register.
- If you’re not required to register with the Companies Register, you can submit the form in one of the following ways:
- In two paper copies at any Revenue Agency office (you don’t need to go to your local office).
- By registered mail, including a photocopy of your ID (again, no local office restrictions—the date of mailing is considered the date of submission).
- Online, either directly or through a delegated intermediary.💶 The average cost of closing an individual VAT number professionally is about €100.
- In two paper copies at any Revenue Agency office (you don’t need to go to your local office).
This procedure applies to all types of individual VAT numbers, regardless of whether you are under the flat-rate or standard regime. The steps and costs are the same in both cases.
Forced VAT number closure by the tax authority
In some cases, a VAT number may be closed automatically by the Revenue Agency if it’s considered inactive, or "dormant."
This rule was introduced in Decree-Law 193/2016, which states that if a VAT number shows no activity for three consecutive years (i.e., no activity reported in tax returns), the Revenue Agency may initiate automatic closure after checking with the tax register.
Before closing, the agency sends the taxpayer a notification. The taxpayer has 60 days from the notification date to provide proof that the VAT number should remain active.
⚠️ This decree also eliminated fines for failure to notify the closure of a VAT number, which previously ranged from €516 (reducible to €167 if paid within 30 days) up to €2,064.
How to change your VAT number details as a freelancer
If you need to change information provided in your original VAT registration (e.g., switching to a new business activity), you must once again use Form AA9/12 and submit it within 30 days of the change.
The form can be submitted online or delivered to a local Revenue Agency office. It usually takes 7 to 10 working days to process.
You must include the new ATECO code for your updated activity. ATECO codes (available on the Revenue Agency website) classify all economic activities.
➡️ You can’t hold more than one VAT number under Italian law. However, you can add a second ATECO code to your existing VAT number if you expand your services, while keeping the same VAT number and selecting the most suitable tax regime.
Alternatively, you can choose to close your current VAT number and open a new one with the appropriate ATECO code. This involves following the standard VAT registration process and receiving a new VAT number for your new activity.
📌 To make the right choice in your specific situation, it’s always advisable to consult a professional to avoid mistakes and bureaucratic issues.
👉 Keep in mind: updating your ATECO code is mandatory for tax purposes when you change your business sector.
How freelancers can check the status of their VAT number
To avoid mistakes or delays, it's a good idea to check your VAT number status at any time—whether you've opened, closed, or updated it. You can do this through the VAT verification tool provided by the Italian Revenue Agency.
This quick and easy check will show:
- The status of your VAT number (active, suspended, or closed)
- The full name of the holder or business
- The start date, and, if applicable, suspension or closure date
- Whether the VAT number is part of a VAT group or a participant in one
For changes or closure of your VAT number, trust Xolo’s team of experts!
In this article, we’ve explained how to close or update your VAT number or sole proprietorship, including forms, deadlines, and procedures.
Still unsure or want peace of mind? Let the Xolo team handle everything for you with tailored services that make these processes easy and stress-free.
