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V0336-15 30 January 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of passive party applies to construction of new building with industrial equipment installation

The DGT confirms that the rule applies when industrial equipment installation is part of the construction of a new building, whether carried out by separate or a single company.

The question raised

Question posed: Application of the reverse charge mechanism to the construction of a warehouse and installation of equipment to the contracting companies and whether said mechanism would be applicable in the event that a single company performed both the construction and the aforementioned industrial installations.

The DGT's ruling

The reverse charge mechanism applies when the work as a whole consists of the construction or rehabilitation of buildings and the contract is for the execution of works. In the construction of a new building with the supply and installation of industrial equipment for production processes, this rule applies to the developer. The reverse charge does not apply if the supply and installation is carried out in completed buildings or if it is not the result of a rehabilitation process. Technical assistance and maintenance operations, when considered separately, are not subject to this rule.

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