Practical guide
Which condominium suppliers are subject to withholding
Not every invoice the condominium pays is subject to the advance withholding. Article 25-ter of Presidential Decree 600/1973 requires the condominium, as a withholding agent, to apply the withholding only on amounts arising from contracts for works and services. Understanding in advance which suppliers fall within the obligation and which stay outside it is essential to apply the deduction correctly from the first invoice, avoiding both omitting a withholding that is due and retaining it on a payment that does not require it. This guide helps to distinguish, case by case, payments subject to withholding from excluded ones.
The criterion: a contract for works or services
The condominium withholding does not depend on the type of supplier as such, but on the nature of the contractual relationship. It is triggered when the condominium pays a fee for services relating to contracts for works or services, provided in the course of a business or self-employed activity. The starting point for any assessment is therefore the question: does this payment remunerate the performance of a contracted work or service?
Fees for construction works and services connected to the property fall within the obligation, regardless of the provider's legal form. The withholding applies even if the supplier is a sole proprietorship or a self-employed professional, and is calculated on the taxable amount of the invoice, net of VAT. The amount is irrelevant: even a small maintenance invoice under a contract is subject to withholding.
Suppliers typically subject to withholding
In condominium practice, the payments most frequently subject to withholding concern companies carrying out works and services on the building. These are services that arise from a contract and that remunerate a work or service provided in an organised way by the supplier.
The list below is not exhaustive, but it covers the most common cases the administrator encounters during the year. For each of them, at the time of payment the withholding must be retained and set aside for payment via F24.
- Companies performing ordinary and extraordinary building maintenance
- Firms carrying out work on systems (plumbing, electrical, lifts)
- Cleaning companies for common parts
- Grounds and gardening maintenance entrusted to firms
- Painting, facade restoration and masonry companies
Payments typically excluded
Payments that do not arise from a contract for works or services in a technical sense remain outside the withholding obligation. The typical case is utilities, such as electricity, gas and water, which represent supplies and not contracts. Similarly, the withholding does not apply to simple supply or sale of goods not attributable to a contract.
Another area of exclusion concerns fees that follow their own withholding regime or that do not constitute a contractual relationship. The administrator's fee, for example, follows the rules of the recipient's professional service and not the condominium withholding of Article 25-ter. In any doubtful situation, the nature of the contract should be verified before payment, ideally with the support of the condominium's accountant.
Doubtful cases and how to handle them
Some invoices are tricky because they mix services and supplies. If a supplier charges materials and labour together, the withholding applies to the entire amount, unless the cost of materials is documented separately: in that case the withholding falls only on the service portion. Distinguishing the two components requires careful reading of the invoice.
Ongoing maintenance contracts, such as periodic fees for operating a system, should also be assessed based on their actual nature: if they remunerate a contracted service, the withholding applies to each payment. The practical rule is not to decide automatically based on the supplier's name, but on the underlying contract.
Check before paying, with method
The most costly mistake is realising only at year end that withholdings due were omitted or applied to excluded payments. A reliable method is to classify each supplier at the time of entry in the register, indicating whether their services fall within Article 25-ter, so that at payment the withholding is proposed automatically only where needed.
AmministraPro lets you associate the withholding status with suppliers and calculate it automatically on the taxable base at the time of payment, feeding the F24 deadlines, the single certification and form 770. On the /funzioni page you will find the details of supplier management and tax tools, while at /prezzi you can compare plans based on the number of condominiums managed.
Frequently asked questions
Does the withholding depend on whether the supplier is a sole proprietorship or a company?
No, the Article 25-ter withholding does not depend on the supplier's legal form but on the nature of the contract. It applies to fees for contracts for works or services, provided in the course of business or self-employment, regardless of whether the provider is a sole proprietorship, a self-employed person or a company. Legal form instead affects the tax code to use in the F24, which differs between IRPEF and IRES recipients, but not the existence of the withholding obligation.
Are electricity, gas and water bills subject to withholding?
No. Utilities represent supplies of goods or ongoing services and do not arise from a contract for works or services in a technical sense. For this reason payments for electricity, gas and water are not subject to the condominium withholding of Article 25-ter. The distinction is clear: the withholding concerns the performance of contracted works and services, such as maintenance, cleaning and work on systems, not the ongoing procurement of utilities essential to the building.
How do I handle an invoice that includes both materials and labour?
If the supplier charges materials and service together, the withholding applies to the entire amount. The exception is when the cost of materials is documented separately from labour: in that case the withholding falls only on the service portion. It is therefore important to read the invoice carefully and, if the separation of costs is clear, apply the deduction only to the service component. In case of doubt it is advisable to ask the supplier for clarification before payment.
Is the administrator's fee subject to the four per cent withholding?
No, the administrator's fee does not fall within the condominium withholding of Article 25-ter, which concerns contract fees paid by the condominium to suppliers. The tax treatment of the fee depends on the recipient's position and follows the rules of their professional activity. It is a recurring mistake to confuse the two levels: the four per cent withholding is meant to capture payments for contracted works and services on the property, not to regulate the fee of the person managing the condominium.
How do I avoid forgetting withholdings during the year?
The most effective method is to classify each supplier at the time of entry in the register, indicating whether their services are subject to withholding, so that at payment the deduction is proposed automatically only where required. A management platform like AmministraPro associates this information with suppliers, calculates the withholding on the taxable base and feeds the F24 deadlines, single certification and form 770. This way the administrator does not have to reconstruct at year end which payments were subject to withholding, reducing the risk of omissions and corrections.
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