Open accommodation business with a flat-rate VAT number or as a Private Individual?

Opening a VAT number to manage a holiday home in Italy is a decision that, for many, comes after a period of trial and error, “spur-of-the-moment” accounts and some legitimate doubts. In the beginning, it often starts off informally: you rent a flat, maybe two, you use online platforms, you make good money and everything seems simple. That's when the right question arises: continue as a private individual or take the step towards a real business?

The answer, in most cases, is not only fiscal but also practical and mental. To open a VAT number means to stop experiencing the activity as something “temporary” or borderline and to start running it with serenity. When a holiday home is advertised on an ongoing basis, generates regular income and is organised with cleaning, check-in and guest management, for the tax authorities it is no longer a simple rental: it is an economic activity in its own right. Continuing to operate as a private individual in these cases may seem convenient in the short term, but exposes one to real risks of disputes, recovery of taxes, back taxes and penalties.

From an economic point of view, then, Italy offers an instrument that makes VAT registration much less “scary” than one might think: the flat-rate regime. For those who manage a holiday home, this regime allows them to pay tax only on a part of their receipts and at low rates, especially in the first years of activity. In practice, not all of what you collect is taxed and the substitute tax is often lighter than what a private individual would pay under the flat rate, especially when revenues start to rise. Added to this is the fact that social security contributions, although a major cost, are not “lost” money, but build a pension position and provide future cover.

Then there is an often underestimated aspect: the operational freedom. With a VAT number you can work without the fear of “overdoing it”, you can grow, add a second or third property, collaborate with others, automate management and present yourself professionally to clients, portals and institutions. You no longer have to pay attention to every detail in order not to appear “too organised”, because organisation becomes your strength, not a risk.

Of course, opening a VAT number does not suit everyone. If the holiday home is an occasional activity, with limited takings and no prospects for growth, remaining private may make sense. But when revenues become significant and management is continuous, the VAT number stops being a burden and becomes a tool for protection and optimisation. In many cases, numbers in hand, not only do you earn more, you also sleep better.

Ultimately, opening a VAT number to manage a holiday home in Italy pays off when you decide to get serious: work transparently, pay the right amount, reduce risks and build a sustainable business over time. It is a step that is only scary as long as it remains an abstract idea; once you understand the mechanism, you often find that it is the most logical and natural choice for those who want to turn a property into a real source of income.

Opening an accommodation business in Italy (such as a bed & breakfast, guesthouse, holiday home or other form of tourist accommodation) with a VAT number under the flat-rate scheme can be a very advantageous choice if you plan to work continuously and professionally but with low costs and bureaucracy. Below is a clear, step-by-step guide for a person starting from scratch

🧭 1. Understanding what accommodation activity means and whether a VAT number is needed
In Italy the activity of hosting tourists can be carried out in different ways:

🏠 Occasional activity (without VAT number)
If you rent only one house or flat occasionally and without additional services, you can stay as a private individual and use e.g. the cedolare secca (flat tax on rent) up to a certain number of units and conditions.
Rule of thumb 2026: with 1 or 2 tourist rental properties, you can operate without a VAT number. With 3 or more it is already considered a business activity with the obligation to open a VAT number.
👉 But if you want to run a professional accommodation establishment (B&B, guesthouse, holiday home, etc.) and not just rent as a private individual, you have to open a VAT number and follow the corresponding tax regime.

🧾 2. How to open a VAT number
To open a VAT number in Italy, you must:

Choose the right ATECO code for the activity: e.g. for B&Bs, guest houses and holiday homes the code is in the 55.20.xx series (e.g. 55.20.41/55.20.42 or 55.20.51, depending on the type of establishment).
Send the declaration of commencement of activity to the Internal Revenue Service, indicating “forfettario” tax regime.
Register with INPS for social security management (and pay contributions).
Submit the SCIA for the start of activities and the required local fulfilments (accommodation register, possible tourist tax, HACCP if serving breakfast, etc.) to the municipality and SUAP.
👉 Tip: have these fulfilments done by an accountant or CAF: there are regulatory and regional details (authorisations, health and hygiene regulations, etc.) that are difficult to handle alone.

💰 3. Flat-rate scheme: what it means for tax purposes
The flat-rate scheme is a simplified tax regime for VAT holders with revenues up to €85,000 per year.

📊 Taxation
You pay a substitute tax instead of the normal IRPEF, additional taxes, IRAP, etc.
The standard rate is 15%.
If it is a new activity and you have not carried out the same activity in the previous 3 years, you can have a reduced rate at 5% for the first 5 years.
The tax base is not the entire turnover: a profitability coefficient linked to your ATECO code is applied. For accommodation activities (B&B, room rentals, holiday homes) it is at 40%. This means that only the 40% of your income is considered taxable income on which tax and contributions are calculated.
👉 Simplified example:
If you collect €50,000, subject to the 40% coefficient, your taxable income will be €20,000. On the 20,000 you calculate tax (5% or 15%) and social security contributions.

🧑‍⚖️ 4. Social security contributions (INPS)
All VAT holders have to pay INPS contributions, which in a hospitality business do not always entail a fixed minimum as for artisans or traders:

🪙 Calculation of contributions
For some flat-rate accommodation activities, the INPS Separate Account (which has no fixed minimum contribution) applies: you only pay a percentage of your taxable income (about 26%).
If, for the specific type, you fall under the Commercial/Artigiani Management, there may be a minimum annual contribution rate, but for some activities such as landlords there may not be (depending on interpretation and INPS office).
Contributions are deductible from income for the purposes of calculating the substitute tax.
There may be contribution concessions or reductions (e.g. 35% discount for new activities) upon application to INPS.
👉 In practice, in addition to the tax of 5% or 15%, you will pay contributions that may be the largest item of your tax burden.

🧾 5. Other burdens and obligations
📅 Accounting and invoicing obligations
Under the flat-rate scheme you have simplified accounting: no complex books of account.
VAT is not charged or paid on invoices, but you must issue an electronic invoice (compulsory for all flat-rate taxpayers with some temporary exemption thresholds).
🪪 Requirements for guests
You must register guests via the Alloggiati Web system at the Questura and report information to the authorities according to public safety regulations.
🏛️ Local regulations
Submit the SCIA (notification of commencement of activities) to the municipality.
Compliance with health and safety regulations.
Comply with any regional or municipal regulations (some municipalities have specific requirements for accommodation facilities).
Fulfilment of any tourist tax and its correct application.
👉 These steps vary from municipality to municipality and often require professional support in order not to incur penalties.

📌 6. Practical advice before starting
✔ Consider whether to go into business or continue as a private individual with occasional short leases (especially in the beginning).
✔ Consult an accountant now before opening: choosing the ATECO code, INPS management and checking the requirements for the 5% tax are crucial and not always immediate.
✔ Plan a business plan realistically: calculate average seasonal income, taxes, contributions and costs.
✔ Remember that the flat-rate scheme is advantageous up to €85,000 in revenues: if you plan to exceed this threshold, consider ordinary schemes or different company structures.

📌 In brief
✔ The flat-rate scheme makes VAT registration simpler and cheaper.
✔ You can pay little (5% substitute tax + INPS contributions on actual income).
✔ You still have to fulfil all the bureaucratic and regulatory requirements of a real accommodation business.
✔ The social security contribution is an important cost to consider.

So let's take a practical, clear and realistic example, so you can understand how much you collect, how much you pay and how much is really left in your pocket with a flat-rate VAT number for an accommodation business (B&B/guesthouse/holiday home).

📊 COMPLETE PRACTICAL EXAMPLE
Hospitality activities under the flat-rate scheme
🔹 Starting assumptions
Imagine:

Annual takings: €40,000
Flat-rate scheme
New business → reduced rate 5%
ATECO accommodation activity code
Profitability coefficient: 40%
INPS Gestione Separata (most frequent case for structures without “classical commercial” organisation)

1️⃣ Calculation of taxable income
Real expenses (utilities, cleaning, breakfasts, portals, etc.) do not count in the flat rate.
The state assumes that you have a certain percentage of profit.

👉 Taxable income = receipts × coefficient

€40,000 × 40% = €16,000

📌 Income on which taxes and contributions are calculated: €16,000

2️⃣ INPS contributions
With the Gestione Separata INPS:

Indicative rate: approx. 26%
No fixed minimum
You only pay if you collect

€16,000 × 26% = €4,160

📌 Annual INPS contributions: approximately €4,160

⚠️ Important:

Contributions are deductible, thus lowering the base on which you pay taxes

3️⃣ Tax base for taxes

Taxable income €16,000
- INPS contributions €4,160
——————————–
Taxable base €11,840

4️⃣ Substitute tax (5%)
Being a new business:

€11,840 × 5% = €592

📌 Annual fees: approximately €592

(Yes, less than EUR 600 in actual taxes)

5️⃣ How much do you pay in total to the State
Entry
Amount
INPS contributions
€4.160
Set 5%
€592
Total
€4.752

6️⃣ How much is left in your pocket (NET)

takings €40,000
- Fees and contributions €4,752
——————————–
NET (before costs) €35,248

📌 You are left with about 88% of the takings, before considering the real costs (utilities, cleaning, maintenance, portals, breakfasts, etc.).

🔍 Important note on actual costs
In the flat-rate scheme:

❌ You may NOT download expenses
✅ But the state “gives” you an automatic flat-rate abatement (that 60% that is not taxed)
👉 It is very convenient if:

The actual costs are lower than the 60%
The business is lean and well organised

🧠 What if it is NOT new business? (rate 15%)
Let us make the same calculation with taxation at 15%:

€11,840 × 15% = €1,776

Entry
Amount
INPS contributions
€4.160
Set 15%
€1.776
Total
€5.936
📌 Even so, the tax burden remains much lower than under the ordinary regime.

⚠️ Other costs to be considered (non-tax)
Accountant: €500 - €1,200 / year
Portals (Booking, Airbnb): 15-20%
Cleaning and laundry
Utilities
Eventual tourist tax (collected and remitted, not your cost)

🎯 SIMPLE CONCLUSION
✔ The flat-rate scheme is great for starting out
✔ The real “tax” is the INPS contributions, not the tax
✔ With €40,000 in takings you can have a very attractive net
✔ Bureaucracy is manageable, especially with a good accountant

🏠 DIFFERENCE BETWEEN B&B, GUESTHOUSE AND HOLIDAY HOME
These three formulas look similar, but in reality they change a lot:

bureaucracy
costs
flexibility
whether or not a VAT number is required

🥐 1️⃣ BED & BREAKFAST (B&B)
🔹 What is
It is an activity carried out in your home (or where you have your residence/domicile), where:

rent some rooms
live in the same building
offer breakfast
👉 It is the most “familiar” form of hospitality.

🔹 Main features
✔ Limited number of rooms (decided by the region)
✔ Compulsory breakfast
✔ Presence of the owner in the facility
✔ Regional regulations often stringent

🔹 VAT number?
❌ NOT needed if:

occasional activity
few rooms
contained incomes
✅ It is necessary if:

ongoing activity
stable advertising
business-like“ organisation”
⚠️ Many regions are now pushing for compulsory VAT registration.

🔹 Pros and cons
✅ Authentic atmosphere
❌ More constraints
❌ Less freedom (you have to live there)

🏨 2️⃣ LANDLORDS
🔹 What is
It is a true entrepreneurial hospitality business:

multiple room rentals
also in different properties
it is not necessary to live there
🔹 Main features
✔ Light hotel-type services
✔ Cleaning and change of linen
✔ No obligation to eat breakfast (but you can offer it)
✔ More flexible than the B&B

🔹 VAT number?
👉 YES, always

It is considered a commercial activity for all intents and purposes.

🔹 Pros and cons
✅ Professional
✅ Scalable
❌ More bureaucracy
❌ Higher fixed costs

🗝️ 3️⃣ HOLIDAY HOME/RENTAL
🔹 What is
You rent an entire flat:

without breakfast
without “hotel-like” services”
for short stays
👉 It is the most used formula on Airbnb & Booking.

⚠️ Here is the key distinction
🔹 Non-entrepreneurial holiday home
✔ 1 or 2 properties
✔ No extra service
✔ Occasional activity

👉 NO VAT number needed
👉 Taxation as a private individual (IRPEF or dry coupon)

🔹 Holiday home ENTERPRISE
✔ 3 or more properties
✔ Continuous activity
✔ Organisation (cleaning, check-in, advertising)

👉 VAT number MANDATORY

🔥 QUICK SUMMARY

 

💰 FLAT RATE OR STAY PRIVATE? WHAT REALLY PAYS OFF
Here we come to the most important part.

👤 REMAIN PRIVATE (without VAT number)
✔ When it pays off
You have only 1 property
Receipts less than €15,000-20,000
You want zero bureaucracy
You do not want INPS
🔹 Taxation
Dry Fee 21%
Or ordinary IRPEF
📌 No social security contributions
📌 Zero electronic invoices

❌ Disadvantages
You cannot grow
Risk of disputes if the activity becomes stable
You cannot do real business

🧾 FLAT-RATE VAT NUMBER
✔ When it pays off
takings over €20,000-25,000
Stable activity
More properties or rooms
You want to work calmly and grow

🔹 Taxation
5% (new activity) or 15%
INPS contributions (but deductible)
Up to €85,000 in receipts
📌 Fiscally very efficient
📌 More credibility
📌 No risk of sanctions

⚖️ DRY COMPARISON

🔹 €30,000 in receipts
Regime
How much do you pay
Private (21%)
~€6.300
Forfeit 5%
~€3.500-4.000
👉 Forfeit wins (also with INPS).

🎯 FINAL (HONEST) CONCLUSION
👉 Staying private only pays off if:

is a small business
almost an extra
without growth ambitions
👉 Forfeited if:

you want to do things right
you really do earn
you don't want to live with the anxiety of control
do you think you will grow over time

An example with 2 properties

Perfect, very clear case 👍
With 2 properties and €60,000 in annual takings we are right at the turning point between “private” and “business”. I'll give you an honest analysis, numbers in hand, and then a clear conclusion.

🏠 YOUR CASE
2 real estate
Total annual takings: €60,000
Short/tourist rental
De facto continuous activity

OPTION 1️⃣ - REMAIN PRIVATE (without VAT number)
📌 Is it possible?
👉 YES, but to the limit
With 2 properties you are not automatically obliged to register for VAT, provided that:

no extra services (no breakfast, no concierge, no reception)
activities formally “leasing”
not too organised management
⚠️ With €60,000 you are very exposed to control: the risk is not theoretical.

💰 TAXATION AS A PRIVATE INDIVIDUAL (DRY COUPON 21%)

€60,000 × 21% = €12,600

Total to be paid:
€12,600 in taxes
0 INPS contributions
Net:

€60.000 - €12.600 = €47.400

📌 Looks good, BUT:

no pension cover
risk retraining as a business activity
if the Agency disputes you → taxes + INPS arrears + penalties

OPTION 2️⃣ - FISCAL VAT PARTICIPATION (the most realistic)
Let's see the real numbers.

🔢 1️⃣ Taxable income (flat rate)
Accommodation activity coefficient: 40%

€60,000 × 40% = €24,000

🧑‍⚖️ 2️⃣ INPS Contributions (Separate Management ~26%)

€24,000 × 26% = €6,240

🧾 3️⃣ Basis for fees

€24.000 - €6.240 = €17.760

💸 4️⃣ Substitute tax
🔹 If NEW activity (5%)

€17,760 × 5% = €888

🔹 If NOT new (15%)

€17,760 × 15% = €2,664

📊 TOTAL PAYABLE
🟢 Forfeit 5%
Entry
Amount
INPS
€6.240
Tax
€888
Total
€7.128
Net:

€60.000 - €7.128 = €52.872

🟡 Forfeit 15%
Entry
Amount
INPS
€6.240
Tax
€2.664
Total
€8.904
Net:

€60.000 - €8.904 = €51.096

⚖️ FINAL (DRY) COMPARISON
Regime
Net
Risk
Private
€47.400
⚠️ High
Forfeit 5%
€52.872
✅ Low
Forfeit 15%
€51.096
✅ Low
👉 Forfeit also wins economically, not only legally.

🚨 THE KEY POINT (what really matters)
Con:

2 real estate
€60,000 in receipts
ongoing management
online portals
organised cleaning
👉 If you remain private you are fiscally fragile.
👉 If they challenge your activity:

they ask you for INPS arrears
unpaid taxes
sanctions
interests
And the “saving” of the coupon disappears in an instant.

🎯 FINAL ADVICE (HONEST, AS A FRIEND)
✅ Open flat-rate VAT number

if new business → 5% for 5 years
you are quiet
you earn more
you can grow (third property, collaborators, etc.)
❌ Remain private:

makes sense under 20-25k
or as a temporary test

👉 2 properties - €60,000 per year - flat-rate VAT number

1️⃣ HOLIDAY HOME or RENTAL HOUSE?
👉 Holiday home (entrepreneur) wins. Without a doubt.
I will now explain why, without mincing words.

🗝️ HOLIDAY HOUSE (entrepreneurs)
What it is, in practice
Whole flat rentals
No breakfast
No “hotel” services”
Check-in, cleaning, linen allowed
Perfect formula for Airbnb / Booking
Why it is IDEAL for you
✅ It is the simplest and least constrained form
✅ Lower costs
✅ Fewer health checks
✅ Less bureaucracy
✅ Perfect with flat-rate scheme
✅ Scalable (if you take the 3rd property tomorrow)

📌 It is the most widely used and safest option for professional short lets.

🏨 ROOM RENTALS
What it is
Single room rentals
Services more like a hotel
Frequent linen change
Breakfast possible
Stricter regulations
Why you should NOT
❌ More bureaucracy
❌ More municipal and regional constraints
❌ Often INPS traders (more expensive)
❌ Does not add real tax advantages
❌ It only makes sense if you do rooms, not flats

🎯 VERDICT OUT
👉 2 flats = entrepreneurial HOLIDAY HOME
It is the cleanest, cheapest and smartest choice.

2️⃣ BEST ATECO CODE (KEY ISSUE)
Everything is at stake here: taxes, INPS, peace of mind.

✅ RECOMMENDED ATECO CODE
55.20.51 - Short-stay room rentals, holiday homes and flats
📌 It is the most widely used and most defensible code for:

holiday homes
entrepreneurial tourist leases
Professional Airbnb
Because it is the right one
✔ Flat rate 40%
✔ Compatible with INPS Gestione Separata
✔ No breakfast requirement
✔ No hotel service
✔ Accepted by Revenue Agency and Municipalities

⚠️ Other similar codes often lead:

INPS traders
minimum fixed contributions
more controls
👉 This code can save you thousands if chosen well.

3️⃣ OPERATIONAL CHECKLIST
👉 WHAT TO DO, IN ORDER, BY TOMORROW MORNING
Save it. It is your roadmap.

🟢 STEP 1 - Accountant (FIRST OF ALL)
📅 Tomorrow:

choose an accountant who knows tourism
tell him clearly:

“I want to open a flat-rate VAT number - holiday home - ATECO code 55.20.51”
📌 Do not delegate the choice of code “at random”.

🟢 STEP 2 - Opening VAT number
The accountant does:

VAT opening
choice of flat-rate regime
rate request 5% (if new activity)
registration with INPS Gestione Separata
⏱️ Time: 1-3 days
💸 Cost: often free or included in the service

🟢 STEP 3 - SCIA to the Municipality
Presentation of SCIA of holiday home
Communication of cadastral data
Compliance with regional requirements
📌 Each region has slightly different rules, but everything is standard.

🟢 STEP 4 - Police Headquarters
Registering for Web Accommodation
Obligation to notify guests within 24 hours
⚠️ This is ALWAYS mandatory.

🟢 STEP 5 - Identification Code (CIN / CIR)
Requesting the Regional/National Identification Code
To be inserted:

on Airbnb
on Booking
on each advertisement

🟢 STEP 6 - Portals and practice management
Update Airbnb / Booking with:

VAT No.
identification code
Set:

check-in
cleaning
seasonal prices

🟢 STEP 7 - Invoicing
Activate electronic invoice
Invoice:

a Booking
to any direct customers
📌 In lump sum:

no VAT
no withholding

4️⃣ MISTAKES TO AVOID (VERY IMPORTANT)
❌ Staying “private” with €60,000
❌ Wrong ATECO code
❌ Accepting INPS merchants without reason
❌ Offering breakfast (changes your regime)
❌ Doing everything “in the middle”

🎯 FINAL CONCLUSION (CLEAR-CUT)
✔ Entrepreneurial holiday home
✔ Flat-rate VAT number
✔ ATECO code 55.20.51
✔ Rate 5% if new activity

👉 It is the most convenient, safest and simplest combination for your case.