TAX DEDUCTIONS AND LOW-RATE VAT

TAX DEDUCTIONS

 

Italian law has granted tax deductions on the cost of building renovation and energy efficiency upgrading projects.

The tax deduction is the amount you can deduct from your taxes, reducing the amount of tax you have to pay.

* For Inland Revenue guidance see "fascicolo 1 - Agenzia delle Entrate – edizione ottobre 2022 – Ristrutturazioni edilizie: le agevolazioni fiscali"

* For Inland Revenue guidance see "fascicolo 2 - Agenzia delle Entrate – edizione marzo 2019 – Le agevolazioni fiscali per il risparmio energetico"

* For Inland Revenue guidance see "fascicolo 3 - Agenzia delle Entrate - edizione gennaio 2023 – Bonus Mobili ed elettrodomestici"

* For official guidance see "fascicolo 4 - Angaisa - edizione 2019 – Detrazione fiscale 50%"

* For official guidance see "fascicolo 5 - Angaisa - edizione 2019 – Detrazione fiscale 50%-65%"

* For official guidance see "fascicolo 6 - Angaisa - edizione 2024 – IVA Ridotta nell’edilizia"

* For official guidance see "fascicolo 7 - Agenzia delle Entrate – edizione febbraio 2023 – Guida alle agevolazioni fiscali ed ai contributi regionali per le persone disabili"

 

WHO CAN BENEFIT?

The following parties are eligible for the fiscal deduction

• the owners of properties or people who hold real rights to their use (life interests, etc.),
• the tenants of the properties on which the work is done,
• the family members, and in particular the spouse, of the parties listed above.

 

IMPORTANT OPPORTUNITIES FOR SAVING ON YOUR PURCHASES:

 

Renovation bonus - Routine and special building renovation works - 50% tax deduction.

*  For Inland Revenue guidance see "fascicolo 1 - Agenzia delle Entrate – edizione ottobre 2022 – Ristrutturazioni edilizie: le agevolazioni fiscali"

*  For official guidance see "fascicolo 4 - Angaisa - edizione 2019 – Detrazione fiscale 50%"

Update to 23/01/2024 ⇒ Renovation bonus: extended until 31/12/2024 (note: AdE guide not yet updated)

 

Energy Efficiency Bonus - Energy efficiency upgrading/improvement works - 50%-65% tax deduction.

* For Inland Revenue guidance see "fascicolo 2 - Agenzia delle Entrate – edizione marzo 2019 – Le agevolazioni fiscali per il risparmio energetico"

* For official guidance see "fascicolo 5 - Angaisa - edizione 2019 – Detrazione fiscale 50%-65%"

Update to 23/01/2024 ⇒  Energy Efficiency bonus: extended until 31/12/2024 (note: AdE guide not yet updated)

 

Air-conditioner bonus – Purchase of a heat-pump air-conditioner – tax deduction min. 50% max 65%.

* For Inland Revenue guidance see "fascicolo 2 - Agenzia delle Entrate – edizione marzo 2019 – Le agevolazioni fiscali per il risparmio energetico"

* For official guidance see "fascicolo 5 - Angaisa - edizione 2019 – Detrazione fiscale 50%-65%"

Update to 23/01/2024 ⇒  Energy Efficiency bonus: extended until 31/12/2024 (note: AdE guide not yet updated)

 

Furniture bonus - Purchase of furniture and large white goods – tax deduction 50%.

* For Inland Revenue guidance see "fascicolo 3 - Agenzia delle Entrate - edizione gennaio 2023 – Bonus Mobili ed elettrodomestici"

Update to 23/01/2024 ⇒  Furniture bonus: confirmed for purchases made by 31/12/2024, but the deduction is reduced 5,000 euros. All other instructions remain unchanged (note: AdE file not yet updated)

 

PAYMENT

In order to qualify for the tax deduction, payments should be made by long-form bank transfer (fiscal bank transfer) which specifies:

• The reason for the payment (order number or invoice number).
• The fiscal ID code of the beneficiary of the tax deduction.
• The VAT registration number and/or fiscal ID code of the beneficiary of the bank transfer.

 

Bank Transfer beneficiary:

ACQUATICA Spa – Banca Popolare di Sondrio – Palazzolo s/O (Brescia) branch

IBAN: IT 66 R 05696 54900 000002090X28

SWIFT : POSOIT22

 

The payment may be made by other methods provided it complies with the provisions of the relevant legislation and with the guidelines provided by the Inland Revenue (see instructions relating to the intended type of bonus).

In the event of error, the payment can be repeated by the correct procedure at a cost of €50.00 to cover our administrative expenses.

 

 

LOW RATE VAT at 4% and 10%

* For official guidance see "fascicolo 6 - Angaisa - edizione 2024 – IVA Ridotta nell’edilizia"

 

BEFORE PURCHASING, CHECK WHETHER YOU QUALIFY FOR LOW RATE VAT.

 

4% VAT - new build, first home or extension.

 

WHO IS ELIGIBLE?

The following are eligible for low rate VAT:

• the owners of properties or people who hold real rights to their use (life interests, etc.),
• the tenants of the properties on which the work is done,
• the family members, and in particular the spouse, of the parties listed above.

 

PREREQUISITES

The prerequisites for low rate VAT on some products for use in the home are:

• 4% VAT - CONSTRUCTION of first home, not in luxury category.
• 4% VAT - CONSTRUCTION of rural buildings for residential purposes.

 

The documents you will have to send us to qualify for low rate VAT are:

• Self-certification (Click here to download form).
• Copy of the valid planning permission (maximum three years) for a new build.
• Photocopy of a valid identity document.
• Photocopy of valid fiscal ID code card or NHS card.

           

10% VAT

* For Inland Revenue guidance see "fascicolo 1 - Agenzia delle Entrate – edizione ottobre 2022 – Ristrutturazioni edilizie: le agevolazioni fiscali"

* For official guidance see "fascicolo 6 - Angaisa - edizione 2024 – IVA Ridotta nell’edilizia"

 

WHO IS ELIGIBLE?

The following are eligible for low rate VAT:

• property owners,
• people who hold real rights to use of the property (life interests, etc.),
• the tenants of the properties on which the work is done,
• the family members, and in particular the spouse, of the parties listed above.

 

PREREQUISITES

The prerequisites for low rate VAT on some products for use in the home are:

•          10% VAT - restoration and conservation PROJECTS.
•          IVA 10 % - redevelopment and construction RENOVATION projects.

Low rate VAT can only be granted on renovation projects if you have a Notice of Commencement/Certified Notice of Commencement which specifies "Building Renovation" or "Restoration and Conservation".

10% VAT cannot always be granted if the Notice of Commencement/Certified Notice of Commencement carries different wording such as "Routine Maintenance" or "Extraordinary Maintenance", since work of this kind involves work being performed by a contractor who has been awarded a tender contract.

 

The documents you will have to send us to qualify for low rate VAT are:

• Self-certification (Click here to download form).
• Copy of valid Planning Permission, Notice of Commencement, Certified Notice of Commencement or Communication of Start of Works for renovation or restoration works.
• Photocopy of a valid identity document.
• Photocopy of valid fiscal ID code card or NHS card.

 

FACILITATIONS FOR THE DISABLED - 4% VAT 

* For official guidance see "fascicolo 7 - Agenzia delle Entrate – edizione febbraio 2023 – Guida alle agevolazioni fiscali ed ai contributi regionali per le persone disabili"

* For official guidance see "fascicolo 6 - Angaisa - edizione 2024 – IVA Ridotta nell’edilizia"

 

Facilitations are available for disabled people who purchase products and devices prescribed by a District Health Authority specialist physician, provided the product is necessary to improve and ensure their level of independence

 

The documents you will have to send us to qualify for low rate VAT are:

• Self-certification (Click here to download form).
• Photocopy of a valid identity document.
• Photocopy of valid fiscal ID code card or NHS card.
• Disability certificate issued by the District Health Authority.

 

IMPORTANT: if you are entitled to low rate VAT you can place the order in the usual way; we will send you the "confirmation of order" with the correct rate of VAT as soon as we receive all the documentation listed above.

  

The above information is for guidance only and we cannot accept responsibility for any unintentional errors and/or inaccuracies.