Bathroom renovation is a very popular building process because the plumbing system, over time, tends to deteriorate and must be replaced. If you are reading this article you are probably about to restore your bathroom and one of the FAQ (Frequently Asked Questions) is: what is the necessary documentation?
Before answering this question, it is important to clarify the difference between ordinary and extraordinary maintenance, which is crucial to understand which SOP (Standard Operating Procedure) and authorisation is necessary, as well as whether it is possible to benefit from favourable VAT (Value Added Tax) and 50% fiscal deduction.
Differences between ordinary and extraordinary maintenance
Understanding whether restoration work can be qualified as extraordinary or ordinary maintenance is important because, according to the current regulations, only expenses that fall into the second category are deductible. In wider terms, extraordinary maintenance concerns the intervention necessary for the renewal and replacement of structural parts of buildings, as well as construction and integration of sanitary ware and technological appliances, unless they increase the volume of the house and change the intended use of the property. As part of the renovation of the bathroom, the following are considered extraordinary maintenance:
- structural work
- opening, closing or repositioning of doors and windows
- complete renovation of the hydraulic system
- replacement of some sections of piping
- elimination of architectural barriers
- reconstruction of existing sewers
Ordinary maintenance instead, includes the work needed to repair, renovate, replace or restyle a building or work aimed at improving the production efficiency of technological appliances, without performing corrective intervention on the structure of the building itself. Simple replacement of sanitary ware and cladding, without replacing any pipes or the whole plumbing system, is not deductible, unless it is part of a larger construction job which is subject to tax credit. Examples of ordinary maintenance are as follows described:
- repair and cladding work
- painting of walls and ceiling
- replacement of sanitary fittings, taps and tiles
Documentation to restore the bathroom
When the bathroom is in need of renovation, most of the time the existing fittings such as sanitary ware, screed and coverings are going to be replaced. Therefore, all this work falls into the category of extraordinary maintenance and requires authorisation called CILA (start of work communication) introduced by the conversion law n. 73 of 2010. For free building work, however, no communication is required.
The planning permission is now provided only for new buildings, volumetric increase and extensive renovation. In all other cases, building work requires a confirmed and signed self-certification by a qualified technician (architect, engineer or surveyor) who declares the compliance of the work with the regulations in force at the time.
The CILA form must be completed in all its parts and presented to the building desk of territorial jurisdiction by the landlord, the renter (with the consent of the owner) or a qualified professional with the mandate of one of the title holders. Being a communication, it does not need approval and it is possible to start working immediately.
The documents to be attached to the CILA form are: the sworn technical report, the design drawings and photographs. The cost, which varies from municipality to municipality, includes the payment of administrative fees (not always provided for) and the bill of the qualified technician.
Tax deductions
For the purpose of recognizing tax allowances, it is worth pointing out that it is not the construction permit measure that establishes the right to tax benefits. The replacement of sanitary ware, which is ordinary maintenance work, is not deductible even if the Municipality requires the SCIA (certified start of works notification) or DIA (start of works statement) forms.
The renovation of the bathroom, being extraordinary maintenance, benefits from the 50% tax credit, which allows you to benefit from the same share for the purchase of bathroom furniture. In addition, all the work included in the bathroom renovation, categorised both in ordinary and extraordinary maintenance, are subject to VAT at 10% instead of the current rate of 22%. The reduced VAT applies to the value of the service minus significant assets.
Example: Suppose that the bathroom renovation has a value of € 2,500, of which € 1,000 for labour and € 1,500 for the purchase of sanitary ware (significant assets). The eligible amount for a reduced VAT is given by the difference between the total value and the price of the sanitary ware, that is to say: € 2,500 - € 1,500 = € 1,000. The remaining part applies VAT at 22%.