A recent ruling issued by the Court of Cassation could concern many future homeowners, as the verdict has offered a new insight into VAT benefits linked to the purchase of a first home.
Until now, many were convinced that, to take advantage of the reduced VAT, it was necessary to declare that they possessed the necessary requirements at the time of signing the preliminary contract. But, about it to the ordinance n. 9084 of 5 April 2024of the Court of CassationYes is simplified the process For enjoy the tax advantage establishing that, the first home discounts the reduced VAT Also without declaration by the buyer in the preliminary.
The case: doubts about the taxable VAT rate on advance payments received
The case arises from an assessment notice for direct taxes, VAT and penalties, communicated to a construction companywho expressed some perplexity with regard to the taxable VAT rate to advance payments receivedon the basis of preliminary contracts Of buying and selling of properties. Previously, the Regional Tax Commission had excluded the possibility of applying reduced VAT to these advances, highlighting the absence of an explicit declaration in the preliminary contracts. The construction company, taking the case to the Supreme Court, argued that, failure to declare in the preliminary agreement should not automatically cancel the possibility of being able to use it to apply reduced VATprovided that this is declared in the definitive purchase deed.
The decision of the Court of Cassation
There Court of Cassation therefore it has approved the thesis supported by the construction company, thus setting an important precedent. In fact, this ruling establishes that, if at the time of signing the definitive purchase deed the requisites for the relief are present and the buyer explicitly declares that he possesses them, the sums paid in advancesuch as advance payments or deposits, must be subject to the reduced VAT rate. In practice: the law does not provide for sanctions for buyers who declare that they are eligible only at the time of purchase conclusion of the definitive contractprovided that what has been declared is actually possessed.
More flexibility on when to declare the requirements for the reduced VAT
In conclusion, this ruling outlines an important clarification for all those who are planning to purchase their first home. In fact, it has been established that one can take advantage of one greater flexibility on when to declare the requirements for the reduced VAT. The recent ruling of the Court of Cassation effectively reshapes the panorama of subsidized VAT for the purchase of a first home, mitigating the rigidity of the declaration requirements. In fact, the buyers and builders they will enjoy greater elasticity.
