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V2932-19 ·23 October 2019 ·consulta-vinculante Medium impact
Tax

Applicability of the reverse charge mechanism to renovation works and VAT rectification

A SOCIMI (Real Estate Investment Trust) asks whether it can apply the reverse charge mechanism to renovation works even if it had not previously notified the contractor of its status as a taxable person. The DGT rules that the mechanism is applicable regardless of when the notification is made and that any VAT unduly charged must be rectified using credit notes.

In 6 key points

How it affects those involved

This ruling clarifies that the reverse charge mechanism can be applied retroactively to renovation works, provided that the taxpayer's status is communicated, and establishes the correct procedure for correcting incorrectly charged VAT through credit notes.

Lifecycle

2019-10-23PublishedPublished 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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