VAT regime, the reading service of the heat cost allocators of condominiums must apply ordinary taxation at 22%. The service, in fact, cannot be considered an accessory performance of the installation, to which the 10% rate is applied. The Revenue Agency explains this in the answer to question no. 163 of 3 June 2020.
VAT regime, at the service of reading the heat cost allocators of the apartment buildings the must be applied ordinary taxation.
The Revenue Agency explains it in answer to question 163 of 3 June 2020.
The rate reduced to 10% is only for theinstallation of heat cost allocators.
Furthermore, the reading of these distributors cannot be interpreted as one ancillary service to that of the installation of the same.
In the practice document, the Revenue Agency summarizes the regulatory framework and provides clarifications on what are the benefits that can take advantage of subsidized taxation.
VAT regime for services in condominiums: the reading of heat cost allocators is subject to ordinary taxation
The VAT regime to be applied to the reading service of heat cost allocators in apartment buildings must be subject to ordinary taxation.
Explains itRevenue Agency in the answer to question 163 of 3 June 2020.
- Revenue Agency – Answer to question 163 of 3 June 2020
- Reading service of the heat cost allocators located inside the condominiums – Applicable VAT rate.
The question of the moment, a company that operates in the energy sector, dwells on two points:
- in which cases the 10% reduced taxation applicable for the installation of the heat cost allocators can be applied, integrating the reading performance of the heat cost allocators with an accessory service to that of their installation;
- if the same is applicable to the reading service, when it is included in an Energy Service contract pursuant to Legislative Decree No. 115/2008 or carried out simultaneously with a separate contract 10% VAT rate.
The Financial Administration denies the possibility of applying the facilitated regime since the reading of the heat repeaters cannot be considered as accessory performance of the installation.
The 10% rate can be applied to the installation, as required by theart. 12 of the Presidential Decree n. 633 of 1972, or the VAT decree.
Following the series of regulatory references that provide for the recovery of the building heritage, reference should be made to thearticle 3 of the Presidential Decree June 6, 2001, n. 380, i.e. the Unique text of the laws and regulations on construction.
L’installation of heat cost allocators can be subjected to 10% VAT regime when it consists of an intervention to integrate or maintain the efficiency of existing technological systems.
However the reading performance of heat cost allocators cannot be considered an accessory service compared to the main one of the installation of the heat cost allocators.
VAT regime for services in condominiums: the reading of heat cost allocators is not an accessory performance of the installation
The practice document of theRevenue Agency provides clarifications on the VAT taxation applicable to the reading of heat cost allocators in condominiums.
The regime to be applied is the ordinary taxation at 22% since it cannot be considered an ancillary service for the installation of the heat cost allocators.
In excluding this possibility proposed by the taxpayer, the Revenue Agency explains what are the characteristics to refer to in order to consider a ancillary service to another.
The concept is clarified in other documents of practice:
THE requirements to be respected are the following:
- the operation must integrate, complete or make possible the main operation;
- the operation must be made directly by the same person who performs the main operation or by third parties, but on his behalf and at his expense;
- the operation must be made against the same subject (transferee / client) against whom the main operation is rendered.
In support of its interpretation, the Financial Administration reports the judgment of 11 January 2001, C-76/99 of the Court of Justice, which underlines that a performance must be considered:
“Ancillary to a main service when it does not constitute for the customers an end in itself, but the means to benefit in the best conditions from the main service offered by the provider.”
In support of the argument, resolution 15 July 2002, n. 230 which states that a generic utility of the accessory service to the main activity, considered together, is not sufficient, since it is necessary that the ancillary service forms one with the main operation.
The practice document emphasizes that this interpretation excludes the possibility to consider the reading of heat cost allocators in condominiums as an accessory to that of the installation.
Therefore, theordinary VAT rate of 22%.