Skip to content
Back to index
V0149-14 23 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

No application of passive subject investment in greenhouse construction for agricultural farms

A construction company asks whether passive subject investment applies when building greenhouses for agricultural clients. The DGT responds that greenhouses are not considered buildings for VAT purposes.

The question raised

In relation to the reverse charge mechanism contained in Article 84.One.2, letter f) of Law 37/1992, it is desired to know whether its application is appropriate in relation to the greenhouses that the consultant is going to construct for its clients who are holders of agricultural holdings.

The DGT's ruling

Greenhouses are real estate constructions of an agricultural nature used for the exploitation of a rural estate. As they are accessory constructions of agricultural holdings, they are not considered buildings under Article 6 of the VAT Law. Therefore, the reverse charge mechanism provided for in Article 84.One.2, letter f) of Law 37/1992 does not apply.

Book your free first meeting