Not sure how to take advantage of the current tax breaks?
Are you planning to renovate your home soon? Once you have read this page you will be able to understand and correctly comply with the
regulations to take advantage of the tax breaks listed below:
- 50% personal income tax deduction for building renovation costs;
- IRPEF deduction 65% for energy requalification;
- 10% discounted VAT for maintenance interventions.
WHAT DOES THE LEGISLATION IN FORCE SAY?
Those who incur expenses for
building renovation works can benefit from the Irpef tax deduction of 36%. For expenses incurred from 26 June 2012 to 31 December 2017, the personal income tax deduction rises to 50%.
A deduction of 50% is also due on the additional expenses incurred, from 6 June 2013 to 31 December 2017, for the purchase of furniture and large appliances of class not lower than A +, as well as A for ovens, for the equipment for which the energy label is provided, aimed at
furnishing the property undergoing renovation .
On the other hand, the deduction is equal to 65% of the expenses made, from 4 August 2013 to 31 December 2017, for interventions for the adoption of
anti-seismic measures on buildings used as main dwellings or for productive activities located in highly dangerous seismic areas.
For the provision of services relating to
building renovation, ordinary and extraordinary maintenance , carried out on buildings mainly for private residential use, the reduced VAT rate of
10% is applied.
Not only the owners or holders of real rights on the properties for which the works are carried out and who bear the costs, but also the tenant or borrower can benefit from the facility.
LINK TO THE PAGE OF THE REVENUE AGENCY
1) Request for a 50% personal income tax deduction for building renovation costs
LINK TO THE PAGE OF THE REVENUE AGENCY
THE DEDUCTION OF 50% HAS BEEN EXTENDED UNTIL 31 DECEMBER 2017
Attention: with the 2017 budget law (law no.232 of 11 December 2016) the 50% deduction for building renovations was extended until 31 December 2017. The Furniture Bonus, i.e. the 50% deduction on a maximum expenditure of 10 thousand euros for the purchase of furniture, is also extended until 31 December 2017. A tax deduction of 50% was also introduced for the period between 1 January 2017 and 31 December 2021 for the costs incurred for the adoption of anti-seismic measures on buildings falling within high-risk seismic areas ( zones 1,2 and 3).
HOW CAN I TAKE ADVANTAGE OF THE DEDUCTION FOR BUILDING RENOVATION EXPENSES?
In order to have access to the deduction it is necessary:
- send us a copy of your identity document (via email on info@windowo.com ) when you place your order on the Windowo website.
We will send you the
invoice with which you will have to make the payment necessarily by
bank transfer as follows:
- Choose the option (present on the paper form or in the electronic version of your bank) indicating the deduction in question (Article 16-bis, Presidential Decree 917/1986 or Tuir);
- Indicates the reason for the payment (for example "Payment of invoice no. Xxxx");
- Enter the tax code of the person making the transfer;
- Enter the VAT number of the person in favor of whom the transfer is made (VAT Windowo Srl: 02324570221).
For more information on the renovation bonus, you can read the
Revenue Agency's Guide on building renovations (the PDF is at the bottom of the page).
2) Request for a 65% personal income tax deduction for energy requalification
LINK TO THE PAGE OF THE REVENUE AGENCY
THE DEDUCTION OF 65% HAS BEEN EXTENDED UNTIL 31 DECEMBER 2017
Attention: with the 2017 budget law (law n.232 of 11 December 2016) the 65% tax deduction for energy efficiency measures was extended until 31 December 2017.
The subsidy consists of a
deduction from IRPEF or IRES and is granted when
interventions are carried out that increase the level of energy efficiency of existing buildings .
In particular, the deduction, which is equal to 65% for expenses incurred from 6 June 2013 to 31 December 2017, is recognized if the expenses were incurred for:
- the reduction of energy requirements for heating;
- thermal improvement of the building (insulation - floors - windows, including fixtures);
- the installation of solar panels;
- the replacement of winter air conditioning systems.
HOW CAN I TAKE ADVANTAGE OF THE DEDUCTION FOR ENERGY REQUALIFICATION?
In order to have access to the deduction it is necessary:
- send us a copy of your identity document (via email on info@windowo.com ) when you place your order on the Windowo website.
We will send you the energy certification of the product and the invoice with which you will have to make the payment, payment which must necessarily be made by
bank transfer as indicated below:
- Choose the option, present on the paper model or in the electronic version of your bank, indicating the deduction in question;
- Indicates the reason for the payment (eg "Payment of invoice no. Xxxx");
- Enter the tax code of the person making the transfer;
- Enter the VAT number of the person in favor of whom the transfer is made (VAT Windowo Srl: 02324570221).
Then you will have to register and send to
ENEA (electronically at the link
www.acs.enea.it ) the documentation required to obtain the deduction.
For more information on the 65% bonus, read the
Revenue Agency's Guide on tax concessions on energy saving (the PDF is at the bottom of the page).
3) Request of 10% VAT on building renovations
First of all, it is necessary to make a first distinction between ordinary and extraordinary maintenance work from restoration, conservative rehabilitation and building renovation.
ORDINARY AND EXTRAORDINARY MAINTENANCE WORK
For
maintenance, ordinary and extraordinary , carried out on residential properties, there is a subsidized regime that allows you to apply VAT reduced to 10%. In the case of goods of significant value, however, the reduced rate of 10% is applied only up to the amount of the value of the service considered net of the value of the goods themselves. On the residual value, therefore, VAT is applied in the ordinary measure of 22%.
Significant assets , on which the reduced VAT of 10% is applied, are expressly identified by the decree of 29 December 1999. Goods of significant value are considered, for example, lifts and hoists, external and internal fixtures, boilers, video intercoms, air conditioning and recycling equipment, bathroom fixtures and fittings, safety systems. To give a practical and real example, let's suppose that 10,000 euros are spent in the context of extraordinary maintenance of a bathroom, of which 4,000 for work and 6,000 for the purchase of significant goods (in this case, taps and sanitary ware). On 6,000 euros of significant assets, in this case, the reduced VAT at 10% is applied only to 4,000 euros, i.e. on the difference between the total amount of the intervention and that of the significant assets (10,000 - 6,000 = 4,000).
Attention must also be paid as not all materials used in maintenance work can benefit from the reduced VAT regime.
REDUCED VAT FOR RESTORATION WORKS, CONSERVATIVE RESTORATION AND RENOVATION
The application of 10% VAT, with no expiration date, is foreseen for all these other types of building restoration work.
It also applies to the supply of so-called finished goods, i.e. those goods which, despite being incorporated in the construction, retain their individuality (for example, doors, windows, sanitary ware, boilers, window frames, etc.).
The facilitation, therefore, is due both in the case in which the purchase is made directly by the client of the works, and when the company or the contractor who carries out them purchases the goods.
HOW CAN I TAKE ADVANTAGE OF THE 10% VAT ON BUILDING RENOVATIONS?
In order to take advantage of the 10% reduced VAT discount it is necessary to send us (via email on info@windowo.com):
- The self-certification form of the subsidized VAT application completed with all the data (find the Form to be filled in at the bottom of the page);
- A copy of the identity document ;
- A copy of the building permit or DIA (Declaration of Commencement of Business) or SCIA (Certified Notification of Commencement of Business).
Furthermore, payments must be made by
bank transfer which must show:
- The reason for the payment (for example "Payment of invoice no. Xxxx");
- The tax / VAT number of the person making the transfer;
- The VAT number of the person in favor of whom the transfer is made (VAT Windowo Srl: 02324570221).
For more information, you can directly consult the
Guide on building renovations of the Revenue Agency (to read the Pdf scroll to the bottom of the page).
Below you can download the guides of the Revenue Agency and the Form to fill out for the facilitated VAT self-certification (click on the document you are interested in):
