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V0605-18 6 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive party applicable in land transfer with pending urbanisation costs

The query asks whether transferring land in urbanisation process, where the buyer assumes urbanisation costs due and unpaid by the seller, allows applying the inversion of the passive party. The DGT confirms that this mechanism is applicable.

The question raised

Application of the reverse charge mechanism under art. 84.One.2.e) third indent to the aforementioned transfer.

The DGT's ruling

The transfer of land subject to the payment of urbanization charges allows for the application of the reverse charge mechanism under art. 84.One.2.e) third indent of Law 37/1992. This is applicable whether the assumption of expenses is express or tacit, or if such assumption does not exist, provided that the expenses have accrued and are due. The case provided for in the second indent of the same article is excluded.

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