In Italy, invoices issued by freelancers (e.g. solicitors, tax advisors or architects) are often referred to as fee notes. These constitute tax-relevant statements of account and, unlike standard invoices, contain industry-specific details, particularly in relation to withholding tax.
Note: In practice, a fee statement is often sent first as a request for payment. However, only the proper invoicing is relevant for tax purposes; depending on the circumstances, the tax liability arises in accordance with the provisions of Italian VAT law (date of performance or payment).
The specific content varies according to the professional group and the type and scope of the mandate, but generally follows a standardised structure. Typical components are:
With freelance services, there's often a withholding tax deduction. This is an advance payment on the freelancer's income tax, which is withheld and paid by the client as a tax substitute.
The deduction regularly applies to services provided to companies or self-employed clients; private individuals are generally not considered tax substitutes.
Withholding tax is usually 20% of the relevant net fee (excluding VAT); expenses may be included or excluded depending on qualifications. The payment is made using the F24 payment form. For freelancers, the withholding tax is not a final tax, but a creditable advance payment that is offset against the final tax liability in the tax return.