The professionals and the sole traders who use their house also as place of business can deduct their "home" utilities and services if they are purchased with their own VAT.
The deduction of the cost, and the deduction of VAT, however, is partial.
the rental costs of the flat used promiscuously by the sole trader or the professional are deductible at 50% if the VAT number owner has not other properties (anywhere in the sole trader’s case and in the same town in the case of professional) exclusively used for his business.
Any Vat tax paid for the lease can not ever be deducted.
The costs, now considered, beared by professionals can be deducted at 50% regardless the real square meters used for the professional activity. The 50% limit can not be changed even if the professional can demonstrate that the percentage of the used professional activity house is greater than 50% (Circular 35 / E / 2012, paragraph 2.2)
The cost is not deductebleif the professional has in the same Municipality another property exclusively used for his business (Art. 54, par. 3 of DPR 917/82).
The costs, now considered, bearded by sole traders are not considered in the TUIR.
According to an old circular of 1975 (n. 9/50091), for example, the warming costs of buildings used as house and also for business can be deducted for the part concerning the buniness sphere with a proportional allocation based in sure and objective ‘cornerstones’ (so not with a flat rate like the percentage used by professionals).
The deduction of the VAT for the utilities now considered does not find instead differences between sole traders and professionals.
To fix the VAT deductible percentage we must useobjective and consistent criteria such as the building volume; if, for example, 30% is used for the business activity then the VAT deducteble percentage will be 30% (circular 24/12/2007, n. 328, paragraph 3.2).
Now I have to add that in order to deduct the cost and the VAT (actually It’s better to say a part of the cost and VAT) can not be required thedomestic service supply with 10% VAT. The correct VAT percentage is only the 22% because the 10% VAT percentage assumes the exclusive domestic use.