Is extended until 31 December 2019 the deduction of VAT on the purchase by the Builder to the extent of about 50% that only the purchase of energy class A or B housing by private. To predict a recommendation that is present in the 2017 Stability Law which was finally approved by the Senate on December 7.
Extension of tax deduction of 50% for the purchase of energy-efficient homes
The tax benefit was introduced by the 2016 Stability Law – Law no. 208 of 2015, article 1, paragraph 56 – and consists of an income tax deduction of 50% VAT and concerns the purchase in 2016 of housing in energy class A or B,
The amendment, welcomed as a recommendation in the Stability Law 2017, commits the Government to extend this measure until 31 December 2019.
Tax breaks for the purchase of energy-efficient homes are intended to stimulate the residential market by stimulating the purchase of quality housing. Goal of the standard is to remove the clear difference in treatment of the tax mechanism, which penalizes those who invest in energy efficiency by purchasing new homes from the manufacturer: for who buys a new home, is subject to VAT, which is not due in the case of sales of used among individuals who are subject to the registration tax calculated on the cadastral value, appropriately revalued with an appropriate factor that changes according to the purchase of a first or second home.
The extension of the incentive is designed to trigger renewal of existing housing offers are still on the market, as well as to try to reduce the penalty due to a purchase with the VAT system.
VAT discount for home purchase from manufacturer years 2017 – 2019
So according to this measure the VAT deduction of 50% will be for the individual who buys a residential property in the energy class A or B by construction firms, whether it’s a new home, or whether it’s a renovated building.
The tax benefit is applicable for both the purchase of a property to be used as a principal residence, both for the purchase of a building intended to house the second applied VAT paid:
4% VAT on the purchase of a first home (not luxury home)
VA to 10% on the purchase of a second home (not luxury home)
VAT of 22% for luxury homes
The discount extends therefore also to luxurious homes. In addition, as mentioned, the benefit also applies to purchases from rescue companies or ristrutturatrici who have performed extraordinary maintenance, preservation and restoration or building renovation.
Included it is also the facilitation of the property appliances, whose act of purchase occurs together with that of the house.
The income tax deduction equal to 50% VAT will be divided into 10 equal yearly amount we will be directly deducted from the payment of annual fees
Mode of VAT deduction for home purchase and advances paid
With Circular 20 / E / 2016, the Tax Office had clarified that the income tax deduction of 50% is applied only to purchases made in the tax period: therefore are not deductible payments on account in 2016 for purchases to be made in 2017
It remains to be seen whether the extension of the measure for the entire three-year period 2017 – 2019 will be provided for any of the benefit extensions also advances paid in 2016.
VAT deduction home purchase 2017 – 2019 and aid from other deductions
In the same circular, the Inland Revenue has clarified that the income tax deduction of 50% VAT on the purchase of energy class A or B housing is combined with tax deductions for restructuring; but in the case where the taxpayer intends to use both benefits will not apply the tax deduction to the total restructuring of VAT, for which already will get a 50% discount divided into ten annual installments; and as a reference example, the Tax a first home purchase by a company restructuring in a renovated building, with a total sale price amounted to € 208,000 euro (200,000 euro + 4% VAT):
VAT at 50% discount of 4,000 Euros, calculated on the total VAT amount to 8,000 euro
Personal income tax deduction for building renovation amounting to 25,500 euro, calculated on 25% of the remaining cost of the property [(208000-4000) * 25% * 50% = 51,000]