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V0567-14 4 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive party in property transfer to extinguish a secured debt

The DGT confirms that the passive party's inversion applies when immovable property is transferred to settle a secured debt or when the buyer is obliged to extinguish it.

The question raised

Admissibility of the application of the reverse charge mechanism provided for in Article 84.One.2.e), third indent of Law 37/1992.

The DGT's ruling

The reverse charge mechanism for the taxable person under Article 84.One.2.e), third indent, of Law 37/1992 requires that the acquirer be a business or professional and that the transaction be a supply of real estate assets used as collateral. This mechanism applies in cases of enforcement of the collateral or in the transfer of real estate in exchange for the total or partial extinction of the guaranteed debt, or of the obligation to extinguish said debt by the acquirer.

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