- Complex services can relate to real estate.
- The VAT relevance is determined by the location of the property.
- Article 7-quater of DPR 633/72 states services related to real estate are VAT relevant where the property is located.
- This rule overrides general VAT rules which consider the location of the client or provider.
- Services must have a direct connection with the property to be considered real estate services.
- EU Regulation 282/2011 defines this connection as essential for the service or involving physical or legal alteration of the property.
- Identifying real estate services can be challenging, especially for complex services involving multiple elements.
- The European Commission’s explanatory notes provide guidance on complex contracts.
- Each property involved in a service must be clearly identifiable.
- Services linked to multiple properties still maintain a direct connection with each property.
- The location of service delivery is not a decisive factor in determining the nature of the service.
- Each service operation is evaluated separately based on current circumstances.
- For complex services involving real estate and other elements, the predominant element must be the real estate service with a direct connection to the property.
- The Italian Revenue Agency examined a case involving the use of a racetrack for events, concluding based on these principles.
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.
