Bathroom renovation 2023, what tax benefits can still be claimed? What tax incentives are still available for those who want to renovate a bathroom in 2023? The incentives allow for significant rebates, and although there is no real rebate for the bathroom, it is still possible to take advantage of the renovation rebates to recover up to 50% of the costs incurred.
Ordinary and extraordinary maintenance, a basic distinction
To better understand which bathroom renovation work is eligible, it is first necessary to distinguish between ordinary and extraordinary maintenance work. According to Article 3 of the Consolidated Building Code, ordinary maintenance work includes repair, renovation, and replacement of building equipment and anything that is necessary to supplement or maintain the efficiency of existing technical systems. These include the renewal of floors, wall coverings and the replacement of faucets.
Extraordinary maintenance, on the other hand, includes all work and alterations necessary for the renovation and replacement of structural parts of the building and for the construction or installation of plumbing systems and technological equipment, provided that they do not alter the overall volume of the building and do not involve changes in the intended use. With regard to the renovation of bathrooms, work that requires the replacement of ceramic fixtures or a change in their arrangement falls under this category.
The difference between the two types of work also requires a different administrative procedure. While ordinary maintenance work does not require a building permit and therefore one does not need to submit any documents to the Municipality to get the green light, extraordinary work requires a CILA (Comunicazione di Inizio Lavori Asseverata), completed by a qualified technician (surveyor, engineer or architect), stating that the work complies with the Municipal Building Code and applicable laws. The same procedure is required for the construction of a new bathroom. For example, if you want to convert a storage room or a small laundry room into a second bathroom, you must submit a CILA to the City Council explaining the change of use. The document is registered and does not require approval, so work can begin immediately after submission.
However, if the renovation of the bathroom involves an increase in area, a construction permit (SCIA) is required and must be approved by the municipality where the property is located before work begins.
Tax Deductions 2023: Bathroom Renovation
Based on this distinction, we can determine if the work we want to carry out in our bathroom is eligible for the renovation deductions 2023. Indeed, only exceptional work is eligible for the tax deductions, which provide for a 50% deduction on a maximum amount of 96,000 euros per real estate unit until December 31, 2023.
Specifically, the deductible operations are the following:
- Hydraulic work for the renewal of the installation.
- Renovation and/or standardisation work.
- Replacement of sanitary ware with other models or other positioning.
- Replacement of the shower with a bathtub (or vice versa).
- Construction of a new bathroom from scratch.
- 10% discount VAT.
For interventions aimed at the rehabilitation of the building heritage carried out on buildings mainly for private residential use, the 10% reduction VAT may be applied in accordance with Article 7(1) (b) of Law No. 488/1999. The reduced tax applies to the items that constitute a significant part of the value of the services rendered.
For example, if we decide to carry out renovation work in the bathroom for a total value of 10,000 euros, of which 6,000 euros are significant goods, we can benefit from the reduced VAT on this amount, while the remaining 4,000 euros will be subject to the normal VAT of 22%.
2023 Incentive for furniture
In conjunction with extraordinary work (for which a CILA has been submitted), it is also possible to take advantage of the 2023 Furniture and Furnishings Incentive. This incentive allows you to recover, through the IRPEF, 50% of the expenses incurred for the purchase of furniture and furnishings, including bathroom furniture and major household appliances (such as a washing machine or dryer, provided they are at least class E), up to a maximum of €8,000. To qualify for this benefit, the date of commencement of the work must be prior to the date of purchase of the goods. How to obtain the tax benefits For both benefits, copies of tax documents must be kept, and all payments must be made in a traceable manner (bank transfer, postal transfer, or credit card). Documents to be kept also include receipts for transfers made. The deduction is then recognised on the tax return and divided into ten equal annual instalments.