The maneuver "Visco - Bersani (DL July 4, 2006 converted into Law No. 223, with amendments by Law No. 248 of August 4, 2006) intervened heavily in the real estate industry with important changes in particular in the context of VAT .
explained below, trying to summarize briefly, the new VAT regime applicable to the real estate industry.
LOCATIONS residential property
Letting residential property is always exempt from VAT (Article 10, paragraph 1, No. 8, October 26, 1972 Presidential Decree No. 633 as amended by the "maneuver") and shall be subject to registration proportional to the rate of 2% (therefore, all leases not subject to registration under the previous legislation must be registered).
SALE OF PROPERTY TO RESIDENTIAL USE
The sale of residential property is normally exempt from VAT unless covers buildings built or refurbished by no more than four years, provided that the sale would be carried out by them has made or renovated or any undertaking which has subcontracted to third parties in their construction or renovation (the latter broad interpretation, which does not correspond to the text of "maneuver" that speaks only to companies building or renovation for the application of VAT to the sale of property for residential purposes is expressly permitted by Circular No. 27, August 4, 2006 of the Revenue - pp. 2 and 3).
It follows that sales of property by real estate companies engaged in resale activities are always exempt from VAT.
For supplies exempt from VAT applies the registration tax and the mortgage and land taxes in accordance with the rules already in force through amendments to the Law "Visco - Bersani," while those subject to VAT shall apply those measures imposed by fixed (you can continue to take account of the benefits granted for the purchase "first home").
LEASE OF BUILDINGS EQUIPMENT
The leases equipment (such as warehouses, offices, shops, warehouses) are (art. 10, para 1, No. 8, October 26, 1972 Presidential Decree No. 633 as amended by "maneuver "):
- exempt from VAT in general;
- to VAT if the tenant is a person who owns the VAT that has no deductible, or has the right to deduct VAT due to the regime of "pro-rata" in no more than 25% (assessed at the inception of the contract, with reference to the rate defined for the year above, and indicated in the lease);
- to VAT in the other cases on an optional basis (ie, at the request of the owner of the property), which will result from the corresponding measure (ie the lease submitted for registration Revenue Agency).
It 'important to note that, irrespective of or exemption from taxation for VAT purposes of the lease, the fees apply in every case, the registration tax at the rate proportional to 1%. Even
all contracts - which in previous legislation were taxable for VAT purposes and therefore not subject to the registration within a fixed period - would then have to be submitted to the Revenue for registration.
SALE OF BUILDING EQUIPMENT
Real estate sales are instrumental (Article 10, paragraph 1, N 8-bis of Presidential Decree No. 633 October 26, 1972 as amended by the "operation"):
- exempt from VAT Generally,
- to VAT if undertaken by construction companies or restructuring for properties sold within four years from completion of construction or renovation (ie, if implemented, always within four years, and by companies who have entrusted to third parties in contract construction or renovation);
- to VAT in the case of option by the seller (ie a request from the seller - which must be printed in the sales - the scope of VAT);
- to VAT if the buyer is a person registered for VAT who has the right to deduct the VAT itself, due to the regime of "pro-rata, to an extent not exceeding 25% (reference should be made to the percentage defined for the previous year and the same must be necessary to bring in the sales contract. If a person purchases a property with an exemption from VAT because it has a percentage of "pro-rata" referred to the year earlier than 25% and, at the end of the year, his "pro-rata for the year under which the sale is below 25%, he must inform the seller for the exemption from VAT of the sale, unless the transaction has already been subject to VAT on an optional basis);
- to VAT if the buyer is a private or not acting in the course of his business, profession or art (in this case, a person must be a statement bring in the sales contract in which the buyer certifies not to make the purchase as a subject VAT).
sales are subject to tax register at a fixed rate (€ 168) for the supplies subject to VAT for free while those for mortgage and land tax will have to serve a total proportion of 4% (the "maneuver" has increased) regardless of the VAT (tax exemption or taxation).
LEASING
To finance leases (the lease) of exactly the same tax regime provided for the locations shown above.
E ', also provided limited the purchase by the leasing company and the repurchase by the user (but only if the building is a building instrumental) reduction from 4% 2% of the overall proportional result for mortgage and land registry (the registry tax is due instead as sales in the fixed amount of 168 €).
The reduction, however, apply only to purchases and redemptions made after September 30, 2006.
OBLIGATIONS OF CORRECTION VAT deducted in previous years
The new VAT system of buildings, extending the area of \u200b\u200bexempt transactions, the effect under existing tax law (Presidential Decree No. 633 October 26, 1972) to make necessary adjustment of the deduction of the VAT in previous years (VAT on purchases can be deducted if and to the percentage by which the active operations - sales or leases - are subject to VAT in the total turnover that is to total lending). In essence, the initial version of the maneuver (the one in DL 223/2006) was the refund of the VAT deducted from the state since 2001, according to the new rules, now would be wholly or partially non-deductible.
The effect would be devastating, not only with reference to the principle of protection of, but more practically because it would place the majority of firms in the real estate sector in serious, if not very serious difficulties economic and financial (return as legitimately deducted in the five previous years).
the conversion law has revised this aspect by providing that with regard to property other than those for residential use is excluded as a general obligation to proceed with the correction. In fact, this obligation (ie to proceed with the adjustment of the deduction of VAT from previous years) exists only if the first act concluded after the August 11, 2006 is not exercised the option to subject to VAT. For real estate for residential purposes, however, is not required to proceed with the adjustment of the deduction of VAT at the time made with regard to buildings owned as of 4 July 2006 and to buildings owned by companies who have built or renovated for which the term of four years from the date of completion of construction or renovation expired before July 4, 2006.
REGISTRATION OF CONTRACTS FOR LEASE IN AT THE TIME OF
July 4, 2006 The new tax regime provides that all real estate leases, whether on residential property and equipment which are subject to registration in fixed term payment of proportional registration (2% or 1% depending on the type of property). This requirement, that of registration, was previously existing only for transactions exempt from VAT.
The Law of conversion of the "maneuver" expects, over the application of the new tax regime for leases on the date of July 4, 2006 that were not previously subject to registration (because the fee was taxable VAT), the possibility for the parties to submit for recording a special declaration, which may be exercised, if the rented equipment to immovable property, the option for the application of VAT (which will have retrospective effect from July 4, 2006 to ensure continuity of tax and revenue: for any fees charged free of VAT from the date of effect of DL 223/2006 need, in this case, issue a debit note only tax paid by the tenant for the VAT payable on the fees previously billed).
The terms and conditions for this performance and for payment of registration will be established with a specific action that the Inland Revenue to be adopted before September 15, 2006.
HOW TO DETERMINE THE TYPE OF PROPERTY
To determine whether a property is for residential use or not necessary to refer to his land classification, irrespective of actual use (in category of buildings for residential use are therefore the buildings or may be classified in category "A", with the exception of buildings in category "A10" - the real estate category "A10" are offices).
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