How the ritenuta d’acconto works
When a professional invoices a company, another professional or a public body, the client keeps back part of the fee and pays it to the State on the professional’s behalf. It is an advance on income tax (IRPEF): 20% of the fee for resident professionals.
The withholding does not lower the invoice total: it lowers what you collect. On a €1,000 fee with 22% VAT the invoice is €1,220, the withholding €200 and the amount collected €1,020.
What it is calculated on
The withholding base is not always the same as the VAT base.
- Fee: always subject to withholding and to VAT.
- 4% INPS recharge (Gestione Separata): optional, part of the fee, and inside both the withholding base and the VAT base.
- Supplementary contribution of a professional fund (cassa): inside the VAT base, outside the withholding base.
- VAT and stamp duty: never subject to withholding.
Special cases
Agents and representatives are withheld at the first income tax bracket rate, 23%, on 50% of their commissions, or on 20% if they regularly use employees or third parties. For non-residents the withholding is 30% and final.
Freelancers in the flat-rate regime (regime forfettario) are not subject to withholding and state so on the invoice. A private client without a VAT number is not a withholding agent and pays the invoice in full.
Frequently asked questions
With no VAT or contributions, divide the net by 0.80: to collect €1,000 the fee is €1,250. With VAT, a recharge or a fund the ratio changes: choose “The amount to collect” and the calculator finds the fee to invoice.
The client pays it, as withholding agent, with form F24 by the 16th of the month after payment, and then gives you the certificazione unica listing the year’s withholdings.
Yes. It is an advance: in your tax return you subtract it from the income tax due. If more was withheld than you owe, the difference is a credit.
Yes. The recharge is part of the fee, so the 20% withholding and VAT apply to fee plus recharge. The supplementary contribution of a professional fund is outside the withholding.
Sources and method
- Presidential Decree 600/1973, art. 25: withholding on self-employment income
- Presidential Decree 600/1973, art. 25-bis: withholding on commissions
- INPS circular 112/1996: the 4% recharge
- Agenzia delle Entrate circular 10/E 2016: no withholding for flat-rate freelancers
Figures and rules checked on . The result is an estimate for information and does not replace professional advice.