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V0664-18 13 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

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

A Compensation Board inquires whether land transfers in progress of urbanisation with pending payment of costs allow the application of the inversion of the passive party by execution of a guarantee. The DGT responds that it is applicable due to the real encumbrance of the land in fulfilling urbanisation obligations.

The question raised

Application of the taxpayer reversal rule under art. 84.One.2º.e) third indent of Law 37/1992 to the aforementioned transfer.

The DGT's ruling

The reversal of the taxpayer under art. 84.One.2º.e) third indent of Law 37/1992 applies when the acquirer is responsible for the payment of urbanization charges that have accrued and are due, provided that the registration of the encumbrance on the plots remains in force. It shall not be applicable if the encumbrance has expired due to the lapse of the 7-year period provided by law. It must also be ensured that it does not fall under the case described in the second indent of the same article.

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