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V0366-22 24 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Promoter is the VAT liable party in the delivery of a newly built commercial property

A commercial property owner asks whether acquiring a newly built property constitutes a liability investment. The DGT determines that, as the conditions in Article 84 are not met, the promoter is the VAT liable party.

The question raised

Whether any reverse charge mechanism of the Value Added Tax would be applicable to said delivery.

The DGT's ruling

The consultant holds the status of entrepreneur or professional due to their leasing activity. However, in the delivery of the newly constructed premises, the application of the reverse charge mechanisms provided for in Article 84.One.2º of the VAT Law is not observed. Therefore, the taxable person for the transaction is the developer of the premises.

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