when the tax credit equal to the VAT paid is due

The Revenue Service published the answer to decision no. 261 of 11 May 2022 on the subject of tax deductions for the market residence by young people.

Article 64 of the legislative decree of May 25, 2021, no. 73 (entitled “Measures in favor of the housing market and in the matter of preventing and combating the discomfort of young people”), as amended by Article 1 of the law of 30 December 2021, no. 234 provides that translation acts in exchange for his property “First houses” of residence, with the exception of cadastral category A1, A8 and A9, as defined in note 1bis of Article 1, of the first part of the invoice attached to the consolidated text of the provisions concerning the registration fee approved by decree of the President. of the Republic of 26 April 1986, Law 131, and the related transfer or constituent acts of naked ownership, usufruct, use and residence are exempt from registration tax and from mortgage and cadastral taxes, if they are defined in favor of subjects who have not yet completed thirty-six years old in the year that the transaction is notarized and that they have an indicative value of the equivalent financial situation that does not exceed 40,000 euros per year.

For transactions referred to in paragraph 6, concerning transfers subject to value added tax, it shall be reimbursed to purchasers who have not yet completed Thirty-six years in the year in which the transaction is defined as a tax credit equal to the value added tax paid in relation to the purchase.

Tax credit can be reduced by registration taxes, mortgage, inheritance, inheritance and donations due for transactions and complaints submitted after the date of obtaining the credit or can be used to reduce the personal income tax due on the basis of the declaration to be submitted after the purchase date? may also be used as compensation in accordance with Legislative Decree of 9 July 1997 no. 241.

In any case, the tax deduction does not lead to refunds.

The above provisions apply to provided for in the period between the effective date of the decree, 26 May 2021 and 31 December 2022.

In case of non-existence of conditions and requirements to benefit from concessions o for the forfeiture of such concessions, for the collection of taxes due and for the determination of fines and interest, the relevant provisions referred to in note IIa of Article 1 of the invoice, first part, attached to the consolidated text of the provisions relating to with the registration fee, approved by decree of the President of the Republic of 26 April 1986, no. 131 and article 20 of the decree of the President of the Republic of 29 September 1973, no. 601.

Basically introduced by the legislator a benefit on the issue of indirect taxes on the purchase of housing in order to promote the housing autonomy of young people, which apply in the case of purchase of the ‘first home», Referred to in Note II-a of article 1 of the Invoice, Part I, which is attached to P.D. 131 of 26 April 1986, provided that the following additional conditions are met:

requirement ‘register“, otherwise the buyer must not have completed thirty-six years of the year of signing the transaction;

– “financial” requirement, the buyer must have an “Equivalent Index of Financial Status” not exceeding 40,000 euros per year.

In particular, Article 64 provides for the exemption from the payment of registration tax, mortgage and land registry and, in case of purchase subject to VAT, the recognition tax deduction amount equal to the tax paid in relation to the purchase. Furthermore, by complying with the same conditions, the exemption from the replacement tax is provided for loans granted for the purchase, construction and renovation of houses.

The tax deduction is due to the area maximum 4 percent; Paragraph 7 of the aforementioned Article 64 even provides for tax credit for transactions subject to VAT or for transactions of transfer of ownership of “first residences”.

This is also confirmed in the explanatory circular of 14 October 2021, no. 12 / E, paragraph 3.1., In which it was clarified that it is up to the buyer, when the exemption regime referred to in Article 10, no. 8-bis, of the Presidential Decree of 26 October 1972, Law 633, tax credit amounting to value added tax paid in relation to the market, applicable at a rate meter 4 percent.

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