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V0336-20 12 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Investment of passive party applies to urbanisation grants if recipient is entrepreneur or professional

A compensation body inquired whether the passive party's investment should be applied to urbanisation grants and professional services. The DGT confirms it applies if the compensation body acts as an entrepreneur or professional with the intent to sell.

The question raised

Whether the reverse charge mechanism occurs in the consulted scenarios and, if applicable, whether the consultant must rectify the tax assessments improperly charged.

The DGT's ruling

The compensation board is an entrepreneur by organizing production factors, whereas the members acquire the status of urban developers if the assessments are imputed with the intention of subsequent sale. In this case, the reverse charge mechanism applies pursuant to Article 84.One.2º.f) of Law 37/1992. Members must reliably communicate their status as entrepreneurs for this mechanism to operate. If assessments have been incorrectly charged, the rectification must be carried out by means of a corrective invoice.

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