- Reduced VAT for building construction is linked to the cadastral category.
- For the 4% “first home” or 10% rate, the property cannot be classified as A/1, A/8, or A/9.
- Recent news reports indicate that the Revenue Agency (Territory Office) has reclassified some newly constructed residential buildings from category A/2 to A/1 in various parts of the country.
- This reclassification can significantly impact the application of VAT on services related to the construction of residential buildings.
- According to item 39 of Table A, Part II, attached to Presidential Decree 633/72, a 4% rate applies to “services provided under contracts for the construction of buildings, as defined in Article…”
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.
