Recall that the services of cleaning, demolition, plant installation and completion relating to buildings rendered in respect of condominiums, are not subject to reverse-chargeprovided for in Article 17(6)(a-ter) of Presidential Decree 633/1972, subject to special exceptions. In fact, the condominium does not normally assume the status of VAT taxable person and, consequently, the transaction is not susceptible to the application of the reverse-charge.
On the other hand, since the condominium is a tax withholding agent, it is not liable for the payments due by it for services relating to works and services contracts performed in the exercise of its business activity, withholding tax of 4% must be applied referred to in Article 25-ter of Presidential Decree 600/1973, except in the following cases:
- where the installation takes on a function ancillary to the supply of the goods;
- whether the services are attributable to self-employment activities (e.g., professionals), as in that case the 20% withholding tax applies;
- when sums paid by condominium owners are paid by means of so-called 'talking' transfers, i.e. those for availing of the tax benefits provided for building renovation or energy requalification.
While remaining at your disposal for any doubts or requests for clarification, we would like to take this opportunity to extend our best regards to all.