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V1135-14 22 April 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive party applies to hospital construction works

A developer asks whether the inversion of the passive party applies to the construction of a hospital for rental. The DGT confirms it applies to construction works but not to material supplies without installation.

The question raised

Reverse charge mechanism in cases of hospital development, where the intended use will be leasing once the works and the corresponding equipment are completed.

The DGT's ruling

The reverse charge mechanism applies to the taxpayer in construction works for the building of structures, such as a hospital, when there is a direct contract between the developer and the contractor. However, the supply of materials (equipment, furniture, etc.) that is not subject to installation and assembly is not considered construction work and is not subject to this mechanism.

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