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V0297-17 3 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive subject does not apply to gravel sales, debris removal or machinery leasing

The consultant asks whether their activities in gravel sales, debris removal and machinery leasing are subject to the inversion of the passive subject. The DGT clarifies that this mechanism applies only to urbanisation, construction or building rehabilitation works.

The question raised

Taxpayer of the described operations.

The DGT's ruling

The reverse charge mechanism requires that the operations be works contracts (with or without materials) in urbanization, construction, or building rehabilitation processes. The rental of machinery with operators is not a works contract, unless the provider undertakes to execute all or part of a work assuming the result. Waste management is not considered a works contract.

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