In the collective consciousness, the word “construction site” refers to a place where a building is being constructed. However, we must clarify that this definition also includes other types of work. Every type of construction site is subject to certain obligations upon its opening. In this article, we will examine a specific aspect of the construction site: What obligations does the company have?
The Construction Site and Its Opening
A construction site is a temporary work area where the construction of a building or civil engineering structure, such as a bridge or dam, is carried out. It is important to emphasize that a construction site is not only present when construction work is being performed. Maintenance, repair, or demolition work, renovation and remodelling work, excavations, or the assembly and disassembly of prefabricated elements also fall under this category. To open a construction site, certain obligations must be fulfilled, including permits and notifications. The prepared documentation must then be stored at the company’s headquarters or within the construction site itself.
The opening of a construction site depends on notification to the tax office, INAIL, and some tax obligations. Article 35 of DPR 633/1972 states that the opening of the construction site must be reported electronically by the company to the tax authorities within 30 days, as well as any changes.
Obligations for the Construction Site to the Tax Office
The opening of new construction sites must also be reported to the tax office. Based on Circular No. 98 of May 17, 2000, which relates to “Answers to questions on income tax, IRAP, VAT, tax offenses, and various,” essential elements of the construction site must be specified: the duration and scope, or the duration of work exceeding three months. Additionally, the location where the activity related to the construction site is performed must be known.
Obligations for the Construction Site to INAIL
The opening of any type of construction site must be reported to INAIL, regardless of the duration of the work or the size of the construction site itself. Excluded are construction sites that employ fewer than five people or have a duration of less than 15 days. The notification of the opening of a temporary construction site must be made electronically via the Denuncia Nuovo Lavoro Temporaneo (DNLTEMP) within 30 days after the start of work.
There is a special case that should be explored. Concerning the notification to the Chamber of Commerce of the opening of construction sites for construction work and the rental of construction machinery, road or water construction equipment. Which includes a sales office and/or administrative office. As mentioned above, construction sites with work lasting less than 15 days or employing fewer than five people are exempt from notification.
Tax Obligations for the Construction Site
In addition to the notifications for the opening of the construction site, there are tax obligations that the company must fulfil. DPR No. 633/72 and 444/1997 require the submission of documentation for the purchase of fuel for construction machinery that cannot travel on roads. Tax obligations also include fees for the use of public land. Advertising taxes and the taxation of electrical energy are also included.
Permanent Occupations
For construction sites that last longer than one year, known as permanent occupations, the parties involved must submit the corresponding notification and pay the fee within 30 days after the permit is issued by the municipality where the construction work is being carried out.
Temporary Occupations
The management of temporary occupations, which last less than one year, is simpler. It only requires the payment of the fee within the deadline set during the occupation period.
Regarding advertising, a municipal fee must be paid for all operational signs with an area over 5 square meters. Signs with smaller dimensions are exempt.
Finally, payment of the so-called “subscription fees,” as described in Article 55, paragraph 5, Legislative Decree No. 504/1995, is required for the use of electrical energy. As we have seen in previous articles, many construction sites use mobile power generators. In this case, the customs office calculates the tax amount based on the characteristics of the generator itself.
Our Conclusion
Opening a construction site requires a series of obligations that the company must fulfil. First, the notification of the opening to the tax authorities, the tax office, and INAIL. Then, there are tax obligations related to the purchase of fuel, the use of public land, and electrical energy. Therefore, before work begins, the company must fulfil all legally prescribed obligations.
