IVA at 10 or 21%

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IVA at 10 or 21%

Post by modicasa on Mon Jun 03, 2013 2:38 pm

Here's a question. If a non-resident does up a house, do they pay IVA at 10 or 21%. The guidelines of the Agenzia don't make any distinction, but a builder I know says its 21% because non residents 'dont pay tax in Italy' But of course, as soon as you buy a house, you do pay taxes. Does anyone have the be all and end all on this?

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Re: IVA at 10 or 21%

Post by The Original Relaxed on Mon Jun 03, 2013 4:06 pm

I have never experienced this - anything which an Italian would pay 10% on then a foreigner does too. Of course there are some works and materials which are charged at 21% whoever you are.

The idea of this discount on VAT is in order to encourage general building work and keep a few workers off the dole - I think it was a European idea, but it is up to the countries how they apply it. It doesn't matter who is commissioning the work, the result is the same!

The tax offsets on insulation and other energy conservation (or energy creation) are only effectively available to people paying tax in Italy, because you can discount a proportion of the costs of this work against your tax liability.
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Re: IVA at 10 or 21%

Post by Geotherm on Mon Jun 03, 2013 4:23 pm

If I remember correctly and as Relaxed says, you have to have a certificate to get the 10%, but it is only applicable to certain areas of the construction and other items. e.g you cannot buy a waste disposal unit or a dishwasher with the discount, whereas you can get the double glazing, floor tiles etc with the certificate.
Rather a minefield. We can charge 4% IVA on a house having a heat pump, if a new build, 10% on a retrofit. Retrofit would also qualify for the now 65% tax reduction (resident only).

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Re: IVA at 10 or 21%

Post by ghiro on Mon Jun 03, 2013 4:30 pm

I've recently has some building work done and the builder added IVA at 10%.
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Re: IVA at 10 or 21%

Post by modicasa on Tue Jun 04, 2013 4:53 am

thanks all- then the builder was covering his own large builders bum and asking for the 21% -

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Re: IVA at 10 or 21%

Post by La Dolcevita on Tue Jun 04, 2013 10:53 am

Ooh didn't know this - that's really good to know - 11% less would be brilliant - every little penny helps

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Re: IVA at 10 or 21%

Post by La Dolcevita on Wed Jun 05, 2013 6:34 am

Emailed our architect to get clarification and this is what he said:-

About the IVA, when you restore something the iva for almost all the work is 10%, but not for technical expenses (ass the architect), and also not if you will buy directly some materials ( as if you will buy alone some cement, wood board, glass)...but if you will buy a windows yes is 10%, and when you will pay the builder, the electrician, the plumber it is also 10%

So happy bunny here - we'd just assumed everything was the 21%

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Re: IVA at 10 or 21%

Post by ourtoscana on Tue Jul 30, 2013 7:52 am

You can also get the VAT reduced when buying sanitary ware and taps for restoration jobs up to a certain value (not manutenzione straordinaria). If you don't ask, most companies will bill at 21%. You will need to provide a declaration that can be prepared by and co-signed with your director of works.

Watch out for pool projects as some companies will charge VAT at 10% or even as low as 4% instead of 21% therefore significantly undercutting their competitors. All they need is this signed declaration and you become liable with the Agenzia delle Entrate!!!

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