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V1730-20 2 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of passive party applies to solar panel park installation

A Spanish company installing solar panels in solar parks for a Romanian client asks how to tax and which models to submit. The DGT determines that, as the park is an edifice, the passive party's investment applies and the operation is not an intracommunity service supply.

The question raised

Taxation of the operation for Value Added Tax purposes and application of the reverse charge rule in the installation and assembly operation carried out by the applicant. Method of declaring the operation in Value Added Tax Forms 303 and 349.

The DGT's ruling

Solar panel installation and assembly services in photovoltaic parks are considered services related to real estate located in Spain. As this constitutes the execution of works (provision of personnel) for the construction of a building in favor of a taxable person, the reverse charge mechanism applies. Therefore, the operation is not an intra-Community supply and must not be declared in Form 349, but rather in Form 303 in the box for operations subject to the reverse charge mechanism.

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