Since the furniture bonus has recently undergone changes, the Revenue Agency has compiled all the official information on its website
and in an in-depth PDF. Below, we analyze the key points:
What is the furniture bonus?
The furniture bonus is a 50% income tax deduction for the purchase of custom-made or mass-produced furniture and large appliances of class A+ or A or higher, intended to furnish a property undergoing renovation.
Recent changes to the furniture bonus
Thanks to Budget Law No. 178/2020, Article 1, paragraph 58, the benefit has been extended to purchases made in 2021 and can be requested by those who began renovation work no earlier than January 1, 2020. For those who made purchases in 2020, renovation work is only possible if the renovation work is completed no earlier than January 1, 2019.
The other significant change is the increase in the maximum ceiling, which in 2019 was €10,000, and has now been extended to €16,000.
Examples of purchases eligible for the furniture bonus
Examples of furniture: beds, wardrobes, chests of drawers, bookcases, desks, tables, chairs, bedside tables, sofas, armchairs, sideboards, mattresses, lighting fixtures;
Examples of household appliances: refrigerators, freezers, washing machines, dryers, dishwashers, cooking appliances, electric stoves, microwave ovens, electric hotplates, electric heating appliances, electric radiators, electric fans, air conditioning appliances; all must have an energy rating of A+ or higher, or A or higher for ovens.
Transport and assembly costs for purchased goods are also considered deductible, provided that the expenses were incurred using the payment methods eligible for the deduction (bank transfer, credit or debit card).
What construction projects are eligible for the tax deduction?
The deduction must be divided into ten equal annual installments and is calculated on a total amount not exceeding €16,000.
To take advantage of the benefit, the work must begin before the purchase of furniture and large appliances. The start date can be proven by any administrative permits or communications required by building regulations, if mandatory, or, for work for which communications or housing permits are not required, by a self-certification (Article 47 of Presidential Decree 445/2000), as required by the provision of the Director of the Revenue Agency dated November 2, 2011.
A taxpayer who carries out renovation work on multiple real estate units will be entitled to the benefit multiple times. The €16,000 expense, in fact, refers to each residential unit undergoing renovation. The purchase of furniture or large household appliances is eligible for tax relief, even if the goods are intended to furnish a different room in the same property undergoing construction work (therefore also intended for the furnishing of a different property or a shop)
How does the deduction work?
The deduction applies to expenses incurred until December 31, 2021, for eligible purchases.
To take advantage of the deduction, payments must be made by bank transfer or debit or credit card. Payments by check, cash, or other means of payment are not permitted. If payment is made by bank or postal transfer, it is not necessary to use the transfer (subject to withholding tax) specifically provided by banks and Poste S.p.A. for building renovation expenses.
The deduction is also allowed if the goods were purchased with installment financing, provided that the financing company pays the amount using the same methods indicated above and the taxpayer has a copy of the payment receipt.
Which documents to keep:
Proof of payment (bank transfer receipt, transaction receipt for credit or debit card payments, and proof of payment to the current account);
Invoices for the purchase of goods, indicating the nature, quality, and quantity of the goods and services purchased;
The receipt indicating the purchaser’s tax code, along with the nature, quality, and quantity of the goods purchased (which is equivalent to the invoice).
If all these requirements are met, the deduction can also be used for furniture and large appliances purchased abroad.