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V0651-23 ·17 March 2023 ·consulta-vinculante Medium impact
Tax

Compensation boards intending to sell acquire business status, triggering reverse charge mechanism

The consultation examines whether members of a fiduciary compensation board are considered business entities for VAT purposes. The DGT determines that the board acts as a business by organising production factors, and that the members are also businesses if they intend to sell the urbanised land.

In 6 key points

How it affects those involved

This ruling clarifies the VAT status of compensation boards and their members, specifically regarding the application of the reverse charge mechanism when land development is intended for sale.

Lifecycle

2023-03-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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