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A company requested clarification on whether the manufacture and installation of stainless steel tanks in an olive oil mill were subject to the reverse charge mechanism. The DGT ruled that these operations do not constitute construction projects for land development or building construction.
Question posed: Treatment of said operations in Value Added Tax.
The installation of a stainless steel tank for storing oil is not considered a construction work for land development or the construction or rehabilitation of buildings. Therefore, the reverse charge mechanism provided for in Article 84.One.2, letter f) of the Value Added Tax Law does not apply.
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