- The Italian Supreme Court ruled that the realignment between VAT and the registry of criteria for non-luxury homes is not retroactive.
- The ruling addresses the discrepancy between VAT regulations and the registry of the first home benefit, which occurred in 2014 and lasted almost a year.
- The discrepancy arose from a reform of real estate transfers, which changed the objective requirements for applying the first home benefit.
- The reform excluded homes classified in cadastral categories A/1, A/8, and A/9 from the benefit, while previously, the benefit was excluded for homes with luxury characteristics defined by a 1969 decree.
- The reform changed the criterion from one based on the concrete characteristics of the property to an objective criterion based on cadastral classification.
- However, the reform only modified the registry tax regulations, not the VAT regulations.
- This resulted in a mismatch between VAT and registry tax regulations for the first home benefit between January 1, 2014, and December 13, 2014.
- The mismatch was resolved on December 13, 2014, when the VAT regulations were aligned with the registry tax regulations.
Source: eutekne.info
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
