"NEWS October 17, 2016-the identification of services connected with immovable property"
As mentioned in a previous contribution, starting next January 1 2017 will come into force new rules to locate the territoriality Vat of real estate services, referred to in article 7-quarter, lett. a) of P.r.decree 633/1972, following the entry into force of the innovations contained in the EC Regulation n. 1042/2013. One of the main innovations concern the connection that services must have with the property in order to qualify them as "relative" to the asset.
In particular, constitute services relating to real property services you have a sufficiently direct with real estates (article 31-a of regulation 1042/2013). This connection, in particular, where the asset is a constitutive element of the service and is essential and indispensable for his performance, as well as with regard to services provided or intended to immovable property, relating to the alteration or entity of that property. On this issue, the Agency had not expressed in a very uneven manner, stating that the services in question are characterized by the presence of a concrete and effective relationship with real estate (resolution 48/2010), Dante, that is, necessarily, be connected to immovable property expressly determined and relate to real estate, which must be the Central and indispensable element of the operation.
The regulation also lists a number of services falling between those real estate, as well as operations that there may be included. The first:
- the development of floor plans for buildings or parts of buildings that targets a particular plot of land, regardless of whether the building is constructed;
- the assessment of real property, even for insurance purposes, to determine the value of a property in collateral for a loan or to estimate possible risks and damages in proceedings;
- property management different from property investment portfolio management, which consists of commercial, industrial or residential real estate management by or on behalf of the owner;
- legal services relating to the transfer of ownership of real estate, the establishment or transfer of certain rights over immovable property or rights in rem in immovable property (assimilated to tangible property), such as notary, or the drafting of contracts relating to the ownership of real estate, even if the underlying transaction which gives rise to the legal property alteration is not completed (circular No. 37/2011 had not, however, considered these services falling between those for sale).
On the other hand, do not constitute, however, real estate services, amongst others:
- the provision of advertising services, even if they involve the use of immovable property;
- the provision of stands at trade fairs or points of exposure, as well as related services allowing the display of products, such as the design of the stand, the transport and storage of the products, the supply of machinery, the laying of cables, insurance and advertising;
- the storage of goods in an immovable property if it is not assigned a specific part of the property for the exclusive use of the addressee.
For these last, is therefore established, as provided in the judgment court case June 27, 2013-155/12, storage of property may in some cases constitute a relevant transaction for VAT purposes in the country of location of the property. Must be partly revised the Agency's position, which, in circular No. 28/2011, had deemed to be the performance of freight depot to the category of services related to real estate.
by Sandro Cerato