8796 IVA on renovation works

You must be resident for that.You may pay 10% though on certain things,windows,roof,etc.

what actually counts as an old property , does it mean it has not been lived in?

Read the long thread that already exists on "property sale/rental advice" on this forum.

[quote=Lisa C;82640]I wonder if anyone knows the criteria regarding the reduced IVA payable on the costs of renovating older properties? I understand it is 4% ( a significant saving) but I'm not sure on what basis a property would be eligible for this rate.[/quote]

Lisa I would also add to the other responses that you can offset all IVA on your renovation if you are going to later have a business in Italy. You must first visit a commercialista, register for a partita D'IVA and keep all receipts. Then, all IVA paid on your renovation can be spread across the next 10 years to discount any personal IVA liability that you may have for goods or services sold.

Re the IVA query. There have been changes in the law in October 2006. These changes may have affected what you have been told but this is what we were told.

If you are renovating an existing structure, and you are a resident, and it is your first (primary) residence, the IVA is 10% on most items EXCEPT primary building materials like: floor tiles, cement, etc.

If you are building a new house and are a resident and it s your primary residence, the IVA is 4% on most materials.

In order to pay the reduced IVA, first you must have an approved DIA from your commune (the renovating plans that have been submitted and approved), then, BEFORE you purchase anything, have your commercialista submit the proper forms to the government that then allow you to request the 10% IVA.
The date used on that form will be the date consistently used on the forms that the stores that you purchase items from require you fill out every time you make a purchase.

Then, lastly, the payment for the reduced IVA purchases must be made via a bank transfer ( bonifico bancaria) not in cash!
Whew.

Do you think it could get more complicated?

Oh my goodness! I'll never get my head around the Italian tax system,I guess that a tax accountant may be a pretty good career choice for my daughter when we move to Sardinia, definitely a job for life! Thanks to everyone for all your help.

Lisa