Skip to content
Back to index
V0450-14 19 February 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión de sujeto pasivo

Reverse charge mechanism applied to the construction of poultry houses with supply of components

A construction company specialising in poultry houses has requested clarification on the VAT treatment when also supplying components such as cage battery systems. The DGT has ruled that the reverse charge mechanism applies to the construction of the building itself, but not to the supply and installation of components in buildings that have already been constructed.

The question raised

Treatment of said operations in Value Added Tax.

The DGT's ruling

In works for the construction of a poultry farm that include the supply of elements specific to the operation, the reverse charge mechanism applies pursuant to Article 84.One.2º.f) of Law 37/1992. However, in the supply with installation of such elements in buildings that have already been constructed, said rule does not apply.

Book your free first meeting