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The consultant asks whether passive investment applies to a property project started before the VAT law reform and completed afterwards. The DGT responds that the mechanism depends on when the tax liability arises.
Question raised: Application of the reverse charge of the taxable person to a work commenced before the amendment of Article 84 of the VAT Law and concluded after said amendment.
The reverse charge mechanism of the taxable person shall apply exclusively to transactions whose accrual occurs from 31 October 2012. If the payment of a work certificate is made before that date, the reverse charge does not apply. If the payment is made after 30 October 2012, the application of the reverse charge shall proceed.
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