The bed and breakfast and guesthouse business, if carried out on an occasional basis, does not necessarily require the opening of a VAT number. This is what was established by ruling 154/2024 of the Friuli Venezia Giulia Tax Court of Justice, which confirmed a previous ruling in favor of a couple involved in a dispute with the Revenue Agency.
The tax authorities had contested their failure to open a VAT number to carry out the activity, but the judges established that, in the absence of organization and professionalism typical of a business, the activity can be considered occasional and non-entrepreneurial in nature.
But what are the criteria that define this occasionality?
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The Role of the lregional law and municipal regulation
A crucial element in defining the occasional nature of the bed and breakfast and guesthouse activity is the regional legislation. In the ruling, reference is made to the regional law of Friuli Venezia Giulia (2/2002), which regulates the activity of B&B and guesthouses in the territory.
This law establishes that the activity must be carried out inside the owner’s home, with a maximum of three rooms and six bedsand may be occasional or limited to specific seasonal periods. Furthermore, the activity must be based exclusively on normal family organization.
In addition to these regional regulations, there are also specific rules in the municipal regulations where the property is located, which further regulate the operating methods.
These legislative indications help to clearly distinguish a business activity from an occasional family management, and are decisive in evaluating whether or not it is mandatory to open a VAT number.
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Supreme Court ruling and social security contributions
The Second Instance Tax Court of Friuli Venezia Giulia also recalled an important order of the Court of Cassation (32034/2019) regarding social security contributions. In this order, the Court of Cassation established that a bed and breakfast that complies with the provisions of the regional law cannot be considered a professional activity.
This principle was fundamental in the couple’s defense, since it clarified that, in the absence of elements of professionalism and organization typical of an entrepreneurial activity, the tax and contribution regulations provided for businesses cannot be applied.
The judges have therefore confirmed that, if the B&B activity is carried out in compliance with local legislation, there is no obligation to open a VAT number or to pay social security contributions.
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Spouses’ compliance with regional legislation
In this specific case, the couple demonstrated that they had fully complied with the regulations set forth by the regional law, starting with the limit imposed on the number of rooms, which did not exceed three, with a maximum of six beds.
The business was managed exclusively by members of the family unit, without resorting to external personnel, thus confirming the strictly family nature of the organization. Furthermore, the occasional nature of the business was respected, with opening periods alternating with closing periods, as required by regional legislation. The legal defense also provided documentary evidence, such as emails sent to customers during the closing periods, in which it was communicated that it was not possible to accommodate them. This demonstrated that the business was not organized on a professional basis, but rather in an occasional and family manner.
The couple’s legal defense also presented documentation proving the closure during non-operational periods, including emails sent to customers communicating the impossibility of accommodating them during these periods.
This strengthened the argument that the business was not organised on a professional basis, but remained limited to occasional family management.
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The court’s final decision
The judges of the Tax Court of Justice of Friuli Venezia Giulia, examining the documentation presented and the compliance with regional legislation, confirmed that the activity carried out by the spouses could not be classified as an entrepreneurial activity.
The ruling reaffirmed that the activity of renting rooms and bed and breakfasts, if lacking the organizational and professional requirements typical of a business, does not require the opening of a VAT number. The keystone of the judgment was the demonstration that the activity was managed with a family organization, respecting the occasionality criteria provided by the regional law.
This ruling sets an important precedent for anyone who occasionally runs a B&B or guesthouse, offering clear guidance on the distinction between a business and a family business.
