The case reviews the requirements for the fiscal recognition of the “rurality” of properties in Italy. It explains that there are different criteria for residential and instrumental buildings. Residential buildings include those used for agricultural purposes by the property owner, tenant, family members, pensioners, or administrators of agricultural companies. The turnover from agricultural activities must also exceed half of the owner’s total income. Instrumental buildings are those necessary for agricultural activities such as cultivation, forestry, and animal farming. The text also mentions that buildings used for agritourism and employee housing may be considered instrumental. It further explains that for VAT purposes, the tax deductibility of residential buildings is limited, while instrumental buildings have no such restrictions. The classification of buildings as residential or instrumental depends on their proper categorization according to the cadastral system, regardless of their actual use. The text refers to specific cases and a recent court ruling that supports the notion that buildings classified as residential but considered instrumental for fiscal purposes can fully deduct the VAT related to their construction or acquisition. It concludes by emphasizing the importance of both the cadastral classification and special tax laws in determining the nature of residential and instrumental buildings.
Source: eutekne.info
