Italy Supreme Court clarifies property damage and VAT compensation rules

The Italian Supreme Court of Cassation has issued rulings clarifying compensation rights regarding property damage and construction defects.

In a decision concerning construction flaws, the Court ruled that individuals seeking reimbursement for defective building works are entitled to include VAT in their compensation. This applies even if the repairs have not yet been completed or if the VAT was not explicitly requested, as it is considered an accessory cost. This is particularly significant for private individuals who cannot recover VAT, making it a direct expense.

In a separate matter regarding water infiltration in commercial spaces, the Court confirmed the principle of joint and several liability. In cases where leaks from upper floors damage garages or commercial units, the damaged party may demand full compensation from either the condominium or the individual owners of the apartments above. This ensures the creditor can recover the entire sum from any responsible party involved.