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V1215-14 6 May 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Adjudicatario in execution mortgage is liable if passive subject investment applies

An entity asks whether the award of a quarry via mortgage enforcement is subject to VAT and who the liable party is. The DGT states that the operation is subject to VAT if the property was used for business activity, and if the exemption for rural land is waived, the award recipient becomes the liable party for investment.

The question raised

Appropriateness of applying the reverse charge mechanism provided for in Article 84.One.2.e) of Law 37/1992.

The DGT's ruling

If the transfer of the quarry is subject to and not exempt from the waiver of the exemption for rural land, the taxable person shall be the successful bidder pursuant to Article 84.One.2.e) of Law 37/1992. In this case, the successful bidder must submit the ordinary self-assessment in their own name and not in the name and on behalf of the taxable person. If the reverse charge mechanism were not applied, the successful bidder would act in the name and on behalf of the taxable person.

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