Do you need to renovate your home?  In these cases you are entitled to 10% VAT

Do you need to renovate your home? In these cases you are entitled to 10% VAT

Definitely one of the most important as well as delicate topics of building renovation worksapply 10% lower VAT, The possibility to implement this measure becomes a real facility, with the ultimate aim of Go to support the entire construction sector,

Legislators wanted to support with this feature Maintenance or renovation of residential properties, Of course it is important to understand what kind of jobs it is possible to apply for.10% VAT reduced, And above all, what should be the fiscal and bureaucratic obligations to be able to implement it.

Building renovation: 10% less VAT

Provision to apply lower VAT of 10% instead of normal VAT of 22%Article 7, paragraph 1, letter b) of Law No. 488/99, The subsidy can be applied only to services aimed at normal and extraordinary maintenance interventions that the taxpayer carries out on buildings for private residential use.

In other words, it means that interventions – both normal and extraordinary – are carried out for maintenance. of residential properties, it is possible to implement a convenient VAT regime. This special measure does not cover work on buildings there whose destination does not appear to be residential: We are talking about properties whose destination varies from A/1 to A/9 and A/11.

To apply the 10% lower VAT on building renovation, the existence of Contract,


It is important to remember that the application of VAT reduced to 10% mainly consists of provision of services, but not the sale of goods, including, for example, the sale of windows. However, it is also true that the contract includes the following points:

  • provision of services,
  • I’purchase of material,

In the event that the contractor provides many items of significant valueVAT rate reduction can also be applied to fine goods for the price competitiveness of the service, net of the value of the assets themselves. This limit has to be identified by deducting the total amount of the service from the value of the most important assets from an economic point of view.

How to identify critical assets

to identify clearly and distinctly. important asset there was one Decree dated 29 December 1999, These briefly include the following assets:

  • elevators and freight elevators;
  • air conditioning and recycling equipment;
  • external and internal fixtures;
  • bathroom fixtures and fittings;
  • boiler;
  • security systems;
  • Videophone.

among finished goods, for which it is possible Apply 10% less VATthere are:

  • plumbing fixtures;
  • conditioning;
  • Researcher;
  • boiler burner;
  • shower stall;
  • boiler;
  • fireplaces;
  • water softener;
  • flush boxes;
  • filter;
  • electronic control units;
  • fixtures;
  • Pumps and circulators of all kinds for hydraulic and/or heating use;
  • chrome faucets and built-in outdoor yellow faucets;
  • spiral stairs;
  • thermal solar systems;
  • photovoltaic system;
  • solar water heater;
  • stainless steel washbasin and sink;
  • radiators with heating bodies of all types and materials;
  • cast iron gate valves and valves;
  • electric, gas or other fuel-fired water heaters;
  • level;
  • Tanks made of cast iron, steel and other materials.

When it is not possible to apply the reduced VAT

of products that do not have good features goneare responsible for the categoriesbathroom furniture They accessories in general, and simple ones home appliances, In this case the goods should be moved by applyingsimple vat rate,

even when they are sold raw material – Such as cement or semi-finished products such as tiles – Normal VAT rate should be applied. This should also happen when the above products are sold for non-luxury homes or for any recovery intervention on the building heritage by taking advantage of special concessions.

10% concessional VAT on essential items

How should the 10% concessional VAT be applied to the important items we have just seen? Benefits should only be applied on the difference between the total value of the service and the total value of the goods themselves,

Therefore it is necessary to separate the value of important assets:

  • will be subject to one party10% VAT reduced,
  • It will be necessary to implement it for what remainsOrdinary VAT at 22%,

Through Resolution No. 25/E/2015The revenue agency reported that the value of raw materials and semi-finished products won’t have to be recognized independently, but will mergewithin the workforce, What does all this mean? In other words, it will be possible to apply a lower VAT while normal or extraordinary maintenance work is being carried out. Accessories supplied directly by the installer,

Let’s take a very practical example. When carrying out work on the heating system, it will be possible to take advantage of 10% VAT for the boiler if provided by the installer itself And belongs to the range of important property. If the customer buys the boiler directly, the VAT to be paid is equal to 22%.

In short, this means that raw materials, semi-finished products and manpower always benefit from a lower VAT rate of 10%. It is not possible to obtain concessions in the following situations:

  • there is one mere supply of goods carrying out various maintenance interventions by third parties in relation to those who carry them out;
  • Services are provided underexecution of a subcontract,
  • has been demonstrated by a professional,

finished goods

VAT relief also applies to supplies of so-called finished goods, In other words, we are talking about those properties which are directly included in the building even if they are not included in the building. she has her own personality, These include doors, exterior fixtures and bathroom fixtures, just to name a few.

In this case the facility is also payable on purchase done directly by the customer, The same is true when a company performing multiple functions purchases these specialty items directly.

To get VAT relief, the value of goods purchased should not exceed half of the total service provided.





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