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A cooperative has requested clarification on whether the reverse charge mechanism applies to the supply and installation of a milking machine and the fencing of a plot for an agricultural building. The Directorate General for Taxes (DGT) has ruled that it will apply if these works are carried out as part of the construction of the building and meet the legal requirements.
Question posed: Application for Value Added Tax purposes of the reverse charge mechanism provided for in Article 84.One.2º.f) of Law 37/1992, both to the supply with installation of the milking machine and to the fencing of the plot.
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