Renovation of the house is a demanding decision, in every sense. For this reason it can certainly be of comfort to know that you can save something by taking advantage of the reduced VAT for the renovation of the house. For the expenses to be faced during the renovation, from the most invasive interventions to the simplest ones, the reduction of VAT is a benefit to be taken into account!
You have perhaps already heard about this reduced VAT: it is a tax advantage that, depending on the type of intervention, can lower the VAT to 4% or 10%. In both cases, the deduction can be requested by means of a self-certification, which declares that the work is being carried out in order to obtain the right to reduced VAT. This self-certification must be shown to the seller by the construction company, which then buys the materials on your behalf, and is essential to take advantage of the reduced VAT on the purchase of goods related to building renovation.
Let’s see for which works the VAT rate applies to 4% and for which the VAT rate applies to 10%.
VAT Rate at 4%
The reduced VAT rate of 4% is applicable to expenses relating to the construction of masonry, electrical, heating, water and works necessary for the construction of the first house. In addition, for the extension of the first house, you can get a further discount on the application of VAT of 4%, provided that at the end of the work the property is not luxury. The 4% rate is also applicable to finished goods – e.g. plumbing, heating or electrical products, fixtures – when the purchase of such products is made directly by the owner for the construction of his first home.
VAT Rate at 10%
The 10% reduced VAT rate applies to restoration, renovation, ordinary maintenance, extraordinary maintenance and to finished goods such as lifts, external and internal fixtures, doors, boilers, video door phones, air conditioning equipment, sanitary equipment, taps and fittings and, lastly, security systems.
The deduction is valid, as anticipated, for routine maintenance works, i.e. all cyclical works of renewal of structural parts and maintenance of existing technological systems, but also for extraordinary maintenance, i.e. occasional interventions of plant adaptation. In this regard, if you are about to do some renovation work at home, have a look at the products BTicino subject to these types of facilities such as theft, gas alarm and lightning protection.
The points in common between the VAT rate at 4% and 10% are the finished goods: to be clearer, in case you find yourself changing the boiler, the bathroom, the windows or doors you can always use the rate at 10%, but only in the case of first home VAT at 4%.