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V0342-22 23 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Construction deliveries subject to 21% VAT rate

A company asks whether it can apply the passive investor's investment in the acquisition of a construction property. The DGT responds that delivery is subject to VAT and that passive investor investment only applies if specific guarantee execution requirements are met.

The question raised

Question raised: Possibility of applying the reverse charge mechanism in Value Added Tax.

The DGT's ruling

The delivery of buildings under construction is subject to VAT and not exempt, with the general rate of 21 percent being applied. The reverse charge mechanism shall only be applicable if the transaction is part of the enforcement of a guarantee or the transfer of real estate in exchange for the discharge of a guaranteed debt, provided that the acquirer is a business person or professional and the real estate is used for their business activity.

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