The change of intended use and the change in the cadastral category of the property also determines the modification of the VAT and registration tax regime, even if the rental contract is ongoing. This is what emerges from ministerial resolution 364/E of 12 December, in response to a request. The case presented concerns two leasing contracts which concern homes for which the change of intended use has occurred having become offices (land registry category A10). The requesting company asked to know how it could bring the lease back to the VAT regime, taking into account that the original contract concerned a home and was exempt from VAT according to article 10.8, letter A of Presidential Decree 633/72. The provision, following the changes introduced by Legislative Decree 223/06, provides for exemption from VAT in any case in the presence of rental of residential buildings. Instead, letter b) of point 8 of article 10 provides, for instrumental buildings, exemption from VAT as a natural regime, which however can be removed by means of an option in the rental contract. An exception is made for rentals to subjects who do not fall within the scope of VAT or who carry out exempt operations for at least 75% of their turnover. In the hypothesis examined by the Revenue, the original rental contract, already registered and for which the 2% registration tax was paid, could not contain the option for the application of VAT on the rental payments since they are residential buildings. After the change of destination from home to office, the Agency reiterated that the operation must follow the rules established for instrumental buildings. Consequently, the change in the VAT regime is also triggered based on the provisions set out in article 10.8. The Agency specifies that in order to exercise the option for VAT taxability and also to demonstrate the change in the rate of registration tax (which goes from 2% to 1% for instrumental buildings) it is necessary to integrate the leasing contracts by highlighting the change in the cadastral category and demonstrating the option for the VAT regime. The supplementary contracts to which the original ones must be attached must be registered within the fixed deadline of 30 days, from when the change of destination takes effect, not necessarily electronically. The ordinary rules apply to the methods of payment of the registration tax, in the amount of 1%, as specified by circular 33 of 16 November 2006. The change of destination of the cadastral variation of the property completed with the option for the application of VAT on the rental fees legitimizes the deduction of VAT by the company. In fact, according to article 19 bis 2, paragraph 3, of Presidential Decree 633/72, the change of destination legitimizes the deduction of the VAT paid on the purchase or construction of the property based on many tenths missing at the end of the tenth year.
source: Real Estate News
Grimaldi Padua
Padua - 35137 - Via G. Matteotti, 27
e-mail: padovacentro@grimaldifranchising.it
Tel. +39 49 663 033 - VAT number 05301660287
Grimaldi Cadoneghe
Cadoneghe (PD) - 35010 - Via G. Franco, 2/A
e-mail: cadoneghe@grimaldifranchising.it
tel. +39 049 88 736 56 - VAT number 05322440289