Skip to content
Back to index
V0566-20 10 March 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Buyer is the liable party when IVA exemption is waived in property transfer

A consulting entity asks whether, in a rural and urban property transfer made as payment where the IVA exemption is waived, the liable party is subject to the investment rule. The DGT responds that, by waiving the exemption under articles 20.1.20 and 22, the buyer becomes the liable party under article 84.1.2.e).

The question raised

Application of the case of reverse charge of the taxable person provided for in Article 84.One.2.e), second indent of Law 37/1992, of December 28, on Value Added Tax.

The DGT's ruling

In the supplies of real estate exempt under numbers 20 and 22 of section one of Article 20 of the VAT Law in which the taxable person has waived the exemption, the taxable person for the transaction shall be the acquirer. This case of reverse charge due to waiver of exemption takes precedence over the case of reverse charge due to enforcement of a guarantee provided for in the third indent of the same article. Therefore, in the case of a dation in payment with waiver of exemption, the acquiring company is the taxable person.

Book your free first meeting