V.A.T. reduced to 10%

The tax advantages shown in this page refers to measures granted by the Italian government to Italian citizens dwelling in Italy

The facilitated VAT on building renovation interventions means that a subsidized regime is applied to these interventions, which consists in the application of reduced VAT to 10%, but we must distinguish between ordinary and extraordinary maintenance interventions and those of restoration and conservative rehabilitation.

Starting from ordinary maintenance operations, VAT is reduced to 10% and not to 22% on services concerning for these operations, but only if these are made on common parts of residential buildings, that is, condominiums (for example foundations, master walls, roofs and paving stones, stairs, entrance doors, arcades, courtyards, all parts of the building necessary for common use, rooms for the concierge and for the accommodation of the porter, the elevators, the wells, the cisterns, the sewers.

What does it mean?
For example, the work carried out by a construction company on the accommodation of the concierge of a condominium is invoiced by applying V.A.T. not to 22% but to 10%. The 10% V.A.T. also applies to extraordinary maintenance work, both for interventions carried out on condominiums and on single real estate units. Recall that fall into this type of work for example the installation of elevators and safety stairs, the construction and improvement of toilets, the replacement of external frames and doors or shutters with shutters and with modification of material or type of frame, the fractioning / unification of real estate units, the reconstruction of stairs and ramps, interventions aimed at energy saving, the fencing of the private area and the construction of internal stairs.

And for the purchase of the materials necessary to carry out the ordinary and extraordinary maintenance work, a reduced V.A.T. rate is charged?
The sale of goods is subject to the 10% reduced V.A.T. rate, only if the relative supply is carried out under the contract.

What does it mean?
Basically, the goods must be purchased by the company that performs the work and not by the private who commissions maintenance work on the property owned. The company purchases the goods and issues an invoice in which the cost of the materials and his work will be charged to the client, with 10% VAT. Attention, however, to the so-called "significant value" assets, ie those that the legislator considers of particular economic value. When the contractor supplies goods of significant value, the reduced VAT rate applies to them only up to the value of the service, considered net of the value of the assets themselves. Therefore, the 10% discounted rate applies only to the difference between the total value of the service and that of the assets themselves.