Everhour separates cost and billable rates, while Italian invoices need careful VAT and payment-term handling.
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A billable-hours calculation in Italy answers three practical questions: how much professional time is chargeable, what euro subtotal comes from the agreed hourly rate, and what the client owes after Italian invoice rules are applied. The starting point is simple: billable hours multiplied by the hourly rate. The result becomes the taxable base when the professional service is within the Italian VAT system.
This page is for service providers, agencies, consultants, and finance teams that need a clean invoice figure before issuing an Italian invoice. It does not decide whether a specific activity is legally billable under your engagement letter or contract. That decision comes first. The calculation only prices the approved billable time and then applies the Italian VAT, non-VAT, stamp duty, and payment-term treatment that matches the invoice.
Italy uses the euro, so rates, subtotals, VAT, and invoice totals are normally stated in €. For taxable professional-service invoices, Italian VAT law treats paid obligations to do, not do, or permit something as supplies of services when the supplier is within the VAT system and no exemption or territorial exclusion applies. The ordinary VAT rate is 22% unless a specific reduced, zero, exempt, or outside-scope rule applies.
The common mistake is adding 22% VAT to every professional invoice. Taxpayers in Italy's regime forfettario do not charge VAT on domestic transactions, so that uplift is not added. Electronic invoices with non-VAT, non-taxable, or exempt amounts over €77.47 are treated as subject to Italian stamp duty, with €2 due per invoice when the bollo condition applies.
For taxable professional time in Italy, calculate the billable subtotal first, then apply VAT: billable hours × hourly rate = subtotal, and subtotal × 1.22 = VAT-inclusive total. If a project has different rates, calculate each line separately before adding them. For example, 24 approved consulting hours at €130 equal €3,120, and 8 approved documentation hours at €70 equal €560.
The pre-VAT subtotal is €3,680. At Italy's ordinary 22% VAT rate, VAT is €809.60, so the VAT-inclusive total is €4,489.60. Keep non-billable research, internal admin, rejected time, and written-off hours outside the billable subtotal. If the supplier is in regime forfettario, do not add the 22% VAT amount; check whether the €2 stamp duty applies when the non-VAT invoice amount exceeds €77.47.
A one-off calculation is enough when you have a small invoice, one rate, approved hours, and a clear VAT status. It is also enough for a quick pre-invoice check before issuing the electronic invoice. Domestic invoices for supplies between Italian resident or established parties generally need to be XML electronic invoices transmitted through Sistema di Interscambio, so the calculated amount still needs a proper invoicing process.
A managed workflow is the better fit when different people use different billable rates, projects have overrides, or old work must keep its original rate after a price change. Everhour separates internal cost rates from client-facing billable rates, supports per-person defaults and per-project overrides, preserves dated rate history, and prices work by project, member, or task before invoice review.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Multiply approved billable hours by the agreed hourly rate in euros. If the professional service is taxable and the supplier is within Italy's VAT system, add 22% VAT to the taxable subtotal. If the supplier uses regime forfettario, do not add the 22% VAT uplift on domestic transactions.
Add 22% VAT when the invoice covers taxable professional services and the supplier is within the Italian VAT system, unless a specific reduced, zero, exempt, or outside-scope rule applies. The VAT-inclusive total for a standard taxable invoice is subtotal × 1.22.
Taxpayers in Italy's regime forfettario do not charge VAT on domestic transactions, so the billable total should not include the 22% VAT uplift. For non-VAT electronic invoices, Italian stamp duty can apply: €2 is due per invoice when the non-VAT, non-taxable, or exempt amount exceeds €77.47 and the bollo condition applies.
Domestic invoices for supplies of goods or services between Italian resident or established parties must generally be electronic invoices transmitted as XML through Sistema di Interscambio. An invoice sent in another format or outside SdI is treated as not issued, so the billable-hours total is only one part of compliance.
If the contract does not fix a commercial payment period, late-payment interest becomes payable 30 calendar days after the client receives the invoice or payment request, or after service delivery when receipt date is uncertain. For B2B transactions, payment periods should not exceed 60 calendar days unless a longer term is expressly agreed and fair.
Everhour separates internal cost rates from client-facing billable rates, so reports can calculate labor cost, revenue, and profit. Members can have default rates, individual projects can override those rates, and dated rate changes keep older reports tied to the correct historical calculation.
Everhour turns tracked billable time and expenses into invoices by calculating amounts from rates, time, and billable expenses while excluding non-billable work. Invoice line items can be grouped by project, task, person, date, or another available breakdown before export to supported accounting tools.
Price work with dated rates, project overrides, and billable-time rules before invoice review. Everhour keeps cost, revenue, and billable totals connected from time entry to invoice preparation.
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