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V0343-22 23 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Investment of passive party applies to exempt property transfers after waiver of exemption

A company asks whether the investment of the passive party applies to an industrial building acquired through a bankruptcy auction. The DGT explains that if the delivery is an exempt second transfer, the exemption can be waived to apply the investment of the passive party.

The question raised

Applicability of the reverse charge mechanism pursuant to the Value Added Tax Act.

The DGT's ruling

If the transfer of the building is a second or subsequent delivery, it shall be subject to and exempt from VAT. The taxable person may waive such exemption if the acquirer is a taxable person with the right to deduction. In that case, the reverse charge mechanism provided for in Article 84.one.2.e) of the VAT Act shall apply.

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