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V0656-22 25 March 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

No applies passive investment to management support services to a UTE

A company asked whether management support services (purchasing, personnel, accounting, etc.) provided to a temporary enterprise union (UTE) are subject to passive investment. The DGT replies that they are not, as these services do not constitute the execution of a work.

The question raised

Whether the reverse charge mechanism of the taxable person provided for in Article 84.One.f) of Law 37/1992 is applicable to the services provided by the applicant to the temporary joint venture.

The DGT's ruling

For the reverse charge mechanism of the taxable person under letter f) of Article 84.One.2 of Law 37/1992 to apply, the transaction must constitute a performance of work derived from urbanization or construction contracts. The performance of work implies the obtaining of a result or a good distinct from the materials used, whereas the leasing of services is characterized by a continuous provision over time pertaining to the activity itself. Management support services do not possess the legal nature of a performance of work; therefore, the requirements for applying said mechanism are not met.

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