So far, the reduced tax rate applies mainly to construction, if the work is carried out by a craftsman. This is practically automatic, and my proposal is to always charge the higher tax rate of 20%.
A builder who wants a lower tax rate (8.5%) has to go through a certain procedure:
-application of the intended works, the Regulatory Unit ex officio gives the permit number (for works that do not require other permits), on the basis of this it obtains the mandatory tender or tenders from contractors, then follows the execution and the invoice at 20% rate. After payment to the contractor's TR (payment can also be on the basis of the tender), the builder submits the documents to the Tax Inspectorate, which can verify the execution and refund the VAT difference up to the reduced rate to the investor's account.
The procedure is simple, bypassing the contractors of illegal construction and miscellaneous construction for purposes where the reduced rate is not foreseen.
The effect would be so great that no increase in tax rates would even be necessary. Of course, this is a hasty note; it needs some elaboration. In the same way, flats and houses would be bought (tax is only refunded after the sale, before that everything is charged at the highest rate).