Tax Pills

Taxation and House: buying and selling
Online the new handbook of the Italian Revenue Agency to guide taxpayers to the purchase or sale of their house

The new handbook of the series “L’Agenzia informa”, entitled "Taxation and House: buying and selling" is a real vademecum that will allow the taxpayer to be well prepared when buying or selling a house. It contains, in fact,  instructions, rates, taxes, deductions and reductions, including advices and examples to guide step by step the taxpayer in all the stages of a transaction.
Before buying - Before any action, it is important that the taxpayer knows beforehand the estate position by making an enquiry to know  the data in the registers, thus verifying both the legitimate owner and the presence or not of mortgages or pending suits, even judicial.  Mortgage Inspections can be obtained online or from the branches of the provincial offices - Land Revenue Agency.
The preliminary agreement - The first step towards the purchase is the preliminary agreement – commonly known as compromesso - which precedes the deed. It is an agreement whereby the parties mutually agree to stipulate a definitive deed,  indicating the main conditions of the sale.
The recording of the preliminary agreement, to be made within twenty days of its signing, requires the payment of the registration fee (200 euro) and stamp duty. If the preliminary agreement provides an advance payment, then it is due a proportional registration fee on the deposit (0.5%), and on the advance payment (3%). At the signing of the deed,  these fees will be scaled down from the tax due for the registration of the deed.
It’s important to know that once signed a preliminary agreement, if the seller transfers the property to other persons or registers a mortgage, the buyer may ask the court for damages. However, in order to avoid such circumstances, the buyer may require the notary to register the preliminary agreement in the land register.
Taxes - In addition to the agreed price,  when buying the house, taxes must be paid  depending on the typology of the seller. If the property is purchased from an individual or a company exempt from Vat, since 1 January 2014, the following fees must be paid: registration fee (9%), mortgage fee (50 euro) and land register fee (50 euro). If the seller is a company subject to Vat, the rate is 10% with the addition of a registration fee (200 euro), mortgage fee (200 euro) and land register fee (200 euro).
The "main residence " - The tax reliefs on the main residence change depending on the seller, individual or company, and in the case of the latter, if it is exempt from Vat or not.
If the seller is an individual or a company exempt from Vat, registration tax falls to 2% from 9%, while mortgage and land register fees are still 50 euro. If the seller is a company subject to Vat, the tax rate drops from 10% to 4%, while registration, mortgage and cadastral remain 200 euro.
When the buyer sells the main residence and within one year buys another house, he is still entitled to a tax credit equal to the amount paid for the Vat or tax registration in the first purchase.
Properties that fall into the categories A1, A8 and A9, i.e. mansions, villas, castles and palaces of eminent artistic and historical value, are excluded from the tax reliefs for the main residence. For sales subject to Vat, the house must be in the "non-luxury" category.
After the purchase - After the signing, the notary will send online a single form to register the deed, to record it in the land registry and make the registration in the cadastral data base.
The fees paid to the broker, i.e. the real estate agency, for the purchase of the main residence can be deducted of 19%, up to a maximum of 1.000 euro. If buyers are more than one, then the deduction should be split. If the buyer has stipulated  a mortgage loan to purchase the main residence, Irpef can be deduct of the 19% of interest expenses, incidental expenses and revaluation of the shares paid to the bank,  up to a maximum of 4000 euro per year.
The purchased property produces an income that is given by the revalued cadastral income or the rent income and must be declared by 730 or Unico form.
Sale of the house - In case of selling of the house, should be taken into account that it may result in a capital gain, that  is a positive difference between the amount collected from the sale of the property and the price of purchase. This value falls into the category of "other income" and as such should be taxed at the usual income tax rates or, alternatively, the seller may opt for the application of a 20% substitute tax. The capital gain is not subject to taxation when to be sold is the main residence or the property is received by inheritance, adverse possession and in other cases.  
The guide is available, in Italian, on the website of the Italian Revenue Agency, within the section "Guide fiscali".

In Italy “Moss” is online
The new portal for EU operators of electronic commerce, telecommunications and broadcasting services - Starting from this 1st of October many companies can choose to register on the Moss (Mini one stop shop), avoiding in this way to identify themselves in any EU Country. In fact, from next year, operators in the field of telecommunications, broadcasting or electronic will be able to declare and pay the Vat due in Italy in relation to services provided in other EU States to individual customers (B2C). The registering procedures for the Moss in Italy have been established by a measure signed by the  General Director of the Italian Revenue Agency, in view of the entry into force from 1st of January 2015 of the new optional Vat regime introduced by the European Union.
What is Moss and its advantages - With the new Web portal, an important simplification measure is realized at EU level: the provider will no longer be required to identify himself in each Member State in which he carries out the Vat operations. In fact, if the provider chooses to register his company to the Moss, he just has to transmit electronically the quarterly Vat returns and pay.​​ All the information will be automatically sent to the Member State of consumption, using a secure communications network. Although it is a voluntary scheme, if a taxpayer chooses to use the Moss, he will have to apply these rules in all Member States.
How to register - Starting from first of October, traders domiciled in Italy, those residents who have not established residence abroad (identified in Italy) and those domiciled or resident outside the European Union that have a permanent establishment in the State can register themselves on  the Moss, through the online services of the Italian Revenue Agency (Entratel/Fisconline). Same timing, but different recording methods, for companies domiciled or resident outside the European Union, not established or identified in any Member State of the Union, who choose to identify themselves in Italy. These operators can apply for registration to the Moss by filling out an online form available on the website of the Italian  Revenue Agency -  in the English section.

(va. ib. e vi. ro.)
FiscoOggi è una pubblicazione dell'Agenzia delle Entrate - Ufficio Comunicazione
Testata registrata al Tribunale di Roma il 19.9.2001 con n. 405/2001
Direttore responsabile Claudio Borgnino