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V1885-22 9 August 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive party applies to land delivery in insolvency agreement phase

A real estate promoter in insolvency asks whether delivery of a buildable plot during the insolvency agreement phase is subject to the inversion of the passive party. The DGT responds that this mechanism applies if the buyer is a business operator or professional.

The question raised

Whether the reverse charge mechanism of taxpayer provided for in Article 84.One.2º.e) of Law 37/1992 must be applied to the transfer of real estate, namely building land, carried out for an amount exceeding the outstanding debt under the agreement.

The DGT's ruling

The reverse charge mechanism of taxpayer under Article 84.One.2º.e) of Law 37/1992 applies to the transfers of real estate carried out at any stage of insolvency proceedings, including the agreement stage. The taxpayer shall be the acquirer, provided that they act in their capacity as a businessperson or professional. The taxable base shall be the total amount of the agreed consideration.

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