The prerequisite for 4% VAT
VAT at 4% for thePurchase of the first home Point 21) of Table A, Part II, attached to Presidential Decree 633/1972 is scheduled. In point 39) the same concessions are provided for the “provision of services dependent on contract contracts relating to the construction of buildings“Towards the subjects who:
- they are not exclusive owners or in communion with the spouse of property rights, usufruct, use and/or home on Another house of home in the territory of the Municipality;
- They are not owners throughout the national territory, ownership rights, usufruct, use, home and bare ownership on Other homes purchased with the concessions (with the exception of possession of any inherited shares, or of properties had in donation in other municipalities);
- If the property is not located in the municipality of residence, they commit themselves to move within 18 months from the end of the works (or declare that the property is located in the Municipality where they carry out the work activity).
In all cases the property to be carried out it must not have the “luxury” characteristicsas the facility is excluded for the cadastral categories A/1, A/8 and A/9.
Two years to resell and have the requirements again
In order to obtain VAT to 4%, at the time of the signing of the contract, it is necessary to release the manufacturer an ‘self -certification of the possession of these requirements (>> you can find it downloadable at the end of the article).
Those who already have a first home and do not fall into the exceptions just viewed, are entitled to reduced VAT if they declare thecommitment to sell the property already owned within 24 months. The previous 18 -month term was in fact revised by the Budget Law 2025 and applies starting from 1 January. The count in the event of a contract always starts from the end of the works, or from the date of delivery of the property (circular 19/2001).
4% VAT for the purchase of finished assets until the closure of the construction site
As established then from point 24) of Table A, Part II, attached to Presidential Decree 633/1972, the right to have VAT is recognized at 4% even in the case of direct purchases of finished goods intended for the first house under construction.
Therefore too For those who buy directlyfor example, doors and windows, products for water, electrical and gas systems, windows, sanitary ware, boilers and radiators there is the possibility to save on the tax, As long as the property is still under construction.
Once the construction site is closed, in fact, the facility on purchases is no longer applicable as the law rules expressly limit the cut of VAT to the realization phase of the property, that is, to the “goods, excluding the raw materials and semi -finished products, provided for the construction, also in economics, of the buildings”. Also in this case it is necessary to release the specific declaration to the seller (>> you can find it downloadable at the end of the article).
Tax cut also for the expansion
The application of VAT reduced to 4%, then, is recognized also for expansion works. If instead a mixed interventionwhich includes both renovation of the existing and expansion, 4% VAT applies exclusively to expansion workswhile those of renovation of the building are subject toVAT at 10%.
Also mandatory in this case to issue the declarations at the time of the signing of the contract. In any case, the property must preserve the characteristics “not luxury“Even after expansion.
VAT for the appurtenances
The legislation, then, allows you to apply VAT to 4% also to the realization of the appurtenancesC/2 (Warehouses and deposit rooms), C/6 (remittances and garages) and c/7 (Closed or open canopies), limited to one for each category.
The Revenue Agency has in fact clarified, with resolution 39/2006, that the facility applies to their construction by means of work or contract contracts even after the construction of the first house. The constrainthowever,, must be certified by the building permit or by the building permit.
Facsimile of declarations for 4% subsidized VAT
Download the two declaration models here:
Facilitated first home VAT: FAQ
- The 4% VAT is up to it even if you buy a property under construction to be completed in economics?
Yes, the concession is admitted on condition that all the other requirements are present, including that of the realization of a non -luxury property. - In case of work in economics, can raw materials benefit from 4%?
No, the raw materials and semi -finished products (cements, tiles, bricks, steel) are always subject to ordinary VAT 22%, regardless of the intended use and the buyer. - For the construction of a first home by the spouses under legal communion regime is it sufficient that only the husband releases the declaration to the manufacturer?
No. Even in the case of spouses under the legal communion of assets, the declarations prescribed by law must be expressly issued by both interested parties. - And if the wife already has a property, what happens?
The manufacturer must carefully check the existence of subjective requirements before applying the subsidized VAT. In the presence of subjective impediments of one of the spouses, it can apply VAT to 4% only to the invoices registered to the person who possesses the requirements. The other will apply VAT to 10%. - In the event of false declarations, who responds to the failure to pay VAT with the ordinary rate?
The payment obligations falls exclusively on the person who issued the false declaration. The verification of the declarations is made through the normal assessment channels by the Revenue Office. - This principle also applies in the event that the client loses the requirements for non -transfer of residence in the terms?
Yes, nothing changes from this point of view. The manager is always those who have released the statements against the tax authorities. The manufacturer only has to acquire this documentation. - And if instead at the time of the contract the client does not have the requirements but later the situation changes?
The important thing is to have the requirements at the time of delivery of the property. As clarified by the Revenue Agency, “if the requirements highlighted above are not possessed at the time of the performance of the individual services, but come to existence at the time of delivery of the property made, the contractor may carry out the corrections provided for in article 26 of Presidential Decree no. 633 of 1972 (circular 1/1994). - What happens if the declaration on the possession of the requirements is not presented at the time of the purchase of goods intended for the construction of the first home?
The seller has the obligation to request and keep the buyer’s declaration certifying the destination of the property to the construction of a subsidized property. The lack of this declaration precludes the application of the reduced rate, even when objectively all the regulatory conditions exist. - If you benefit from VAT 4% for the construction of a pertinent car garage, you still have the right to the deduction, or is it lost?
Yes, this is the only case in which the deduction for renovation is also due in the event of new construction. The 50% deduction (as the first home), however, belongs only to the construction costs attested aside. - And in case of construction of two garages?
The facility is limited to a cadastral category relevance. If you buy two garages (both C/6), only one will benefit from VAT 4%, while the second will be subject to the ordinary regime provided for that type of property, that is, 10% as the relevance of property for residential use.
