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V1151-15 15 April 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Personal guarantee excludes subject passive inversion

A promoter society asks whether delivering plots to settle debt triggers subject passive inversion. The DGT responds that a real property right guarantee is essential for this mechanism to apply.

The question raised

Appropriateness of the application of the reverse charge mechanism to the delivery of plots provided for in Article 84.One.2.e), third indent of Law 37/1992

The DGT's ruling

The reverse charge mechanism for the taxable person provided for in Article 84.One.2.e), third indent, of the VAT Law requires that the transferred real estate be subject to a right in rem of security. If the debt is guaranteed solely on a personal basis, without real security over the real estate, the application of this mechanism is not appropriate. In the event of transferring real estate with real security alongside other real estate without it to extinguish debts, the reverse charge shall only apply to the former.

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