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V1303-14 14 May 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Electric line installation not considered an edifice for passive investor investment

A company asks whether the installation of electrical lines qualifies for passive investor investment. The DGT replies that it does not, as foundations, towers, cables, and power lines are not regarded as buildings.

The question raised

In relation to the reverse charge mechanism contained in Article 84.One.2º, letter f) of Law 37/1992, the application of the reverse charge mechanism is sought regarding the operations carried out for the installation of electrical lines consisting of:

The DGT's ruling

Bases, towers, insulators, cables, and low, medium, and high voltage lines are not considered buildings. To apply the reverse charge mechanism in construction works, the activities must fall within land urbanization projects or the construction/rehabilitation of buildings. Services such as topography, obtaining permits, staking out, or safety coordination do not constitute construction works and do not determine the application of this rule.

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