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V0551-18 26 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Reverse charge mechanism does not apply to the acquisition of properties intended for renovation

A professional acquires a property at auction for the purpose of renovating and reselling it. The DGT examines whether the acquisition is subject to the reverse charge mechanism and how to determine the value of the building to meet the requirements for the renovation exemption.

The question raised

Question raised: The manner in which the acquisition value of the building must be determined for the purposes of the provisions of Article 20.One.22º.B) of Law 37/1992. In particular, whether any encumbrances existing on the property prior to the auction should be included and how the land value can be calculated. Whether the investment made by the taxable person in the adjudication of the property to the successful bidder is applicable.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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