there is a great deal within the thread below which will answer your questions i think regarding taxation.....
http://www.italymag.co.uk/forums/pro...k-italy-2.html
as regards vat have just posted this below and it nows allow you to run a business here without registering for Vat if you stay within certain limits...there is a link within that thread to the italian site which also heelps with the italian income tax return form... on occaision these can be viewed in english... but am not sure how extensive that is...
http://www.italymag.co.uk/forums/gen...-startups.html