So, I do some occasional freelance work (translation, proofreading) and I make around 500-800 euros a month. A friend of mine tells me I should register for VAT to keep everything above board, but on the other hand I hear that taxes and administrative costs would eat up all my earnings. Is it really worth it or is it better to stay in the flat-rate regime?
How many months out of the year are you roughly earning under 5000 euros?
Because if it's really sporadic and you don't think you'll grow over the next few years, the flat-rate regime at 5% is basically made for you - you pay almost no taxes, basically nothing, and the bureaucracy is minimal. A full VAT registration only makes sense if you start earning regularly more and think you'll scale up, otherwise it really eats into your margins between accountant fees, contributions, and tax returns.
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