- For you earn 3,000 euros net per month with a VAT number, it is necessary to take into account the various aspects of running the self-employed business, such as net annual compensation, social security contributions and IRPEF sections.
- ONE’accurate financial planning it is necessary to calculate the adjusted gross turnover, taking into account taxes and contributions.
- This process requires detailed breakdown of spending and taxation thresholds to determine the exact amount to be invoiced.
Many in Italy choose to open a VAT number, an option that offers flexibility and autonomy, but which also entails the need for precise financial planning to achieve the defined income goals.
€3000 net per month they may seem like an easily achievable goal, especially for an ambitious self-employed professional with a strong desire to succeed. However, the various factors that affect the final net worth must be considered.
In this article, we will explore in detail how to calculate the turnover required to achieve this profit targetproviding clear and practical guidance for self-employed professionals.
Earn €3000 per month: the net amount
For VAT holders, establish monthly net income goal is the first step in planning your financial journey. If the goal is to earn 3,000 euros net per month, it is necessary to first consider this amount on an annual basis.
Multiplying 3,000 euros by the 12 months of the year, we get a net annual salary of 36,000 euros. However, this is only the beginning of the calculation.
You really should achieve gross turnover, which must be high enough to cover not only the desired net profit, but also social security contributions, taxes and any other operating costs. Let’s see how to do it.
Social security contributions and IRPEF: the costs of a VAT number
Social security contributions represent a significant part of the costs for VAT holders. For example, if you are registered with INPS Separate Management, you will have to pay rate of 26.23% on the taxable basewhich is your income minus deductible expenses.
In addition to social security contributions, taxation must also be considered income brackets and associated IRPEF rates. With the tax reform, the system now provides four income categories, each with its own tax rate, for common VAT numbers.
The table below provides a general overview, which implies separate management since it is the most adopted INPS regime in Italy. For other social security funds another calculation will be needed.
|% of social security contributions
|Monthly net that remains within limit
|Up to €15,000
|Between €15,000 and €28,000
|Between €28,000 and €50,000
It is therefore clear that to bill €3000 net per month, we should be placed in the fourth income bracket of IRPEF. Let’s see how to carry out the practical calculation of the necessary turnover.
But beware: from next year, the In 2024, the IRPEF brackets will be further reduced to three, so it is necessary to stay updated with the tax news to get true estimates. In addition, those on the flat tax regime submit tax instead of IRPEF.
How much should I charge to earn €3000 with the regular regime
Let me calculate the total amount of taxes and levies is a critical step in determining how much to charge. This calculation includes both the IRPEF rates associated with each income bracket and social security contributions. It should be considered that each VAT number refers, based on the sector, to a specific rate of profitability. Taxes and contributions must then be calculated.
For example, in arm with an IRPEF rate of 43%adding 26.23% of INPS contributions, we get a total sum of 69.23%.
This overall rate allows you to calculate how much you need to cover taxes and levies, ensuring you reach your monthly net income goal.
The practical example
To show how these calculations are applied in practice, let us consider his case professional with a VAT number in the normal regime and registered in Separate Management, who aims to earn 3,000 euros net per month. Based on the IRPEF brackets and INPS contributions, we calculate the necessary annual turnover:
- Let’s first calculate the net annual compensation, making €3,000 x 12, which gives €36,000;
- We add to the expected income the amount that will be allocated to the IRPEF, in this case with a rate of 43%, so €15,480.
- finally we add the social security contributions, i.e. 26.23% on the taxable base and therefore €9,442.8.
Adding the taxes and contributions for each parenthesis, we arrive at a annual turnover of approximately €60,922.8even if this calculation does not take into account any deductible expenses, as these are highly variable estimates that depend on practitioner to practitioner.
This means that in order to earn €3,000 net per month, the professional needs to invoice approximately €5,077 per month.
How much should I charge to earn €3000 on a flat rate plan?
However, things are changing for the flat rate regime: those who intend to earn the net annual amount we saw earlier can join this favorable tax regime, which is provided for those with an income of less than €85,000 per year.
Here the taxes are much lower, that is they can range from 5% for the first 5 years to 15% for the next period. However, it must be taken into account that the contributions are the same in relation to a common VAT number. With the benefits regime it is possible to earn 3,000 euros net per month starting from a lower gross income.
Even with this subsidized regime, several factors must therefore be taken into account, including:
- taxes payable (5% or 15%).
- contributions to be paid (to INPS or another fund);
- what is the tax base on which taxes and contributions are calculated.
Let’s take a quick example: a flat-rate VAT has a profitability ratio, based on the Ateco code, of 67%. Since the business has just started, taxes are 5%. Through Separate Management, however, the contributions are 26.23%. The calculation to be done is as follows:
(5% x 67%) + (26.23% x 67%) = 20.96%
The result corresponds to what the freelancer with a flat-rate status will have to pay taxes and contributions, while the rest is what wins in net terms. So (100% – 20.96%) gives 79.04 as a result, or the net profit percentage of the total.
This favorable regime is particularly useful for those who have just started a self-employed business and guarantees a higher monthly net income because the taxes applied are lower than the usual tax regime.
To get €3,000 net per month according to this example, the following ratio must be done: €3,000 : 79.04 = x : 100. the result is 3,795or the amount in euros that the professional must earn gross each month to have 3,000 euros net.
How much to bill to win €3,000 – FAQ
To earn €3,000 net per month with VAT, you need to invoice around €5,077 per month. This calculation takes into account social security contributions, taxes and IRPEF brackets, but does not include specific deductible expenses, which may vary depending on your individual situation.
To obtain a net profit of 1,500 euros per month with VAT, it is necessary to bill approximately 2,268.3 euros per month. This calculation takes into account social security contributions, taxes and IRPEF brackets, but does not include deductible expenses which may vary individually.
Earnings depend on many variables: the sector in which the self-employed person is active, the relevant social security fund, the taxation applied and so on.