First Home Tax Break: A Year of Misalignment Between VAT and Registry

• The Italian Supreme Court highlights a discrepancy in the first home tax benefit rules for VAT and registration tax for almost a year.
• The benefit was previously limited to homes not classified as “luxury” according to a 1969 decree.
• The 2011 reform changed the criteria to exclude homes classified in specific cadastral categories.
• The reform initially only affected registration tax, leaving the VAT rules unchanged.
• A 2014 decree aligned the VAT rules with the registration tax rules.
• The case involved a property sale in 2014, where the property was considered “luxury” under the 1969 decree but not under the new cadastral classification.
• The taxpayer argued that the 1969 decree was no longer applicable.
• The Supreme Court ruled that the 1969 decree remained applicable until the 2014 decree.

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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