VAT in construction
4% VAT relief
Work on improving made outside of the specifications on a new building to be used as a “first House“ can take advantage of the subsidized regime foreseen by the number 39) of table A, part II, attached to P.r.decree 633/1972, reduced VAT rate of4% in. He clarified the IRS, by resolution 2/22/2011, # 22 (s).
The scheme it is only in the hypothesis of contracts concerning the construction ofmanufactured housing “from scratch“ target not luxurious, whose clients can be respectively building contractors for resale, housing associations and their associationsas well as individuals who meet the requirements ‘ first home. “
Therefore in the concrete case considered, related to construction work commissioned to a third party by a housing association property to uniform, and further improvements were commissioned by a member of the cooperative itself, meet the criteriabefore home, even the latter can make use of the facilities.
The extension of the concessionary rate of VAT to those benefits is based on the assumption that individual services rendered against the Member relating to the interventions of improvement does not relate to a building renovation, since the accommodation they work on jobs is not yet fully realized, but fit rather in the process of construction of the property, albeit made against a different subject from the main contractor.
Of course, the House retains it even after the completion of the work in question, non-luxury features, determined on the basis of the parameters laid down by Ministerial Decree 8/2/1969.
Discounts 10% VAT on building renovations
The subsidized scheme of VAT at 10% for ordinary and extraordinary maintenance work. The Finance Bill 2010 has made permanent (the deadline set previously was the December 31, 2011) facilitated VAT regime.
This facilitated regime provides that in case of provision of services concerning ordinary and extraordinary maintenance work on residential VAT applies reduced to 10%.
To qualify for the 10% tax is not necessary to indicate on the invoice the cost of labor used, indicating that 65% is compulsory in order to enable the bonus though on energy saving and the 50% recovery of heritage buildings.
In case of supply of goods still applies the VAT, provided that its supply is carried out under the contract. However, if the contractor provides goods of significant value,VAT at 10% shall apply to those goods only up to the value of the benefit considered net of the value of the goods themselves. This limit value is obtained by removingfrom the total amount of the benefit (represented by the entire compensation owed by customer), only the value of the goods.
According to the Decree of December 29, 1999 are considered significant assets:
lifts and service lifts;
the video intercom;
the equipment for packaging and the recycling of air;
internal and external frames;
sanitary ware and bathroom taps.
10% VAT on those goods applies only up to the amount of the difference between the full value of the supply and that of the goods. So if for example the cost of the surgery to be carried out is € 10000 (euro 4000 for work performance and euro 6000to purchase significant assets as the boiler and appliances for air conditioning), theVAT is applied on the difference between the total amount of the intervention and that of the goods (10000 – 6000 = 4,000). Then VAT at 10% applies only to euro 4000. The remaining 2,000 euro VAT applies to 22%.
The VAT may not apply to goods supplied by a person other than the one running jobs, nor to goods bought directly by the developer, at professional services performed as part of interventions aimed at building restoration, to services rendered in executing subcontracts to company carrying out the work. In the latter case the subcontractor must invoice with VAT at 22% the principal firm that subsequently, the buyerwill bill the provision with VAT at 10%, provided that there is every reason.
To take advantage of the 10% you need special requirements not VAT nor any communication to institutional bodies, nor the payment by bank transfer. However, it isnecessary that the renovations are done on a private dwelling houses.
VAT at 10% is also provided for building restoration, rehabilitation and refurbishment. In particular facilitated rate applies:
for the supply of services dependent on contracts or of work relating to the implementation of restoration, rehabilitation and restructuring;
for the purchase of goods, with the exception of raw materials and intermediates, provided for the creation of such restoration, rehabilitation and building renovation, identified by the article 3, letter c) and d) of the consolidated text for the building industry (DPR No. 380/2001).
In addition, the reduced VAT to 10% also applies to supplies of “finished goods“, that is, to those goods which, although incorporated in the building, retain their individuality.
For example, boilers, to health care and so on. In that case the facility is up and when the purchase is made directly by the contractor of the work, whether to purchase the goods is the company or service provider who performs them.