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V1496-22 22 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Supply of concrete depends on whether installation or mounting is included

A company asks whether the supply of concrete and aggregate for building a petrol station is subject to the passive party's investment. The DGT responds that this applies only if the supply includes vibration, spreading, installation, or mounting of the material.

The question raised

The consulting entity questions whether the reverse charge mechanism provided for in the Value Added Tax Law will apply to the supply of concrete and aggregate.

The DGT's ruling

For the reverse charge mechanism to apply to the taxable person in works contracts, the contract must have the nature of a works contract. The supply of goods subject to installation and assembly, such as the vibrating and spreading of concrete, is considered a works contract. However, the supply of materials that are not subject to installation and assembly does not have that consideration. Therefore, if the concrete is delivered to the construction site without installation or assembly, the reverse charge mechanism does not apply.

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