Reverse charge in instrumental properties

The art. 17, paragraph 5 of the Presidential Decree. n. 633/72, provides from October 2007, the application of the reverse charge or reverse charge in the transfers of instrumental properties for which the transferor has opted for VAT imposition.

It is therefore envisaged that the reverse charge also applies to the sale of properties that are instrumental in nature in the event that the transferor opts for VAT liability. of the transfer, pursuant to art. 10, paragraph 1, n. 8-ter, letter d) Presidential Decree n. 633/72.

Circular no. 27/E/2006 specifies what is meant by "property instrumental by nature", to which the above-mentioned regulation refers: these are properties which due to their intrinsic characteristics are not susceptible to different uses without radical transformations (in the cadastral classification reference is made to the acronyms: A10, B, C, D, E).

In these hypotheses, therefore, by operating the reverse charge mechanism, the VAT taxability is no longer the responsibility of the transferor, but of the buyer, who has thus come to comply with the relevant obligations.

Furthermore, the parties involved in the operation must observe the specific invoicing methods referred to in the art. 17, paragraph 5 of the Presidential Decree. n. 633/72:

the seller will invoice the buyer for the sale price of the property without charging VAT. and with the indication of the rule that exempts him from the application of the tax (art. 17, paragraph 5 and paragraph 6, letter a-bis) of the Presidential Decree. n. 633/72);

the buyer will integrate the invoice received, with the indication of the rate and the related tax due, with the related formal obligations of registration of the same, to be carried out both in the register of fees, referred to in the art. 24 Presidential Decree n. 633/72, and in that of purchases, pursuant to art. 25 Presidential Decree n. 633/72.

For the sale of instrumental properties, the registration tax is applicable in a fixed amount; while the hypo-land registry taxes are due at a total of 4% (3% + 1%).

Who we are:

Expertise Re is a real estate agency based in Catania in Corso Sicilia 105, which operates mainly in Palermo and Catania, also through a network of selected real estate agents, present throughout Sicily, Calabria, Rome and Milan.

Expertise Re is a real estate agency specialized in the sale and rental of entire buildings, income properties, commercial premises, industrial warehouses, offices, executive buildings and hospitality and residential properties.

He also has skills in the evaluation of individual assets and real estate portfolios, and in the study and analysis of intervention plans aimed at the disposal and redevelopment of properties according to specific needs and objectives.

We believe that only by starting from specific needs can we identify the most suitable real estate investment solutions.

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