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V2005-17 26 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

The reverse charge mechanism applies to the taxpayer if the acquirer assumes the obligation to extinguish the guaranteed debt

A company transfers several plots of land, one of which is subject to a mortgage that the seller undertakes to cancel. The DGT rules that this scenario allows for the application of the VAT reverse charge mechanism.

The question raised

Question raised: Applicability of the reverse charge mechanism provided for in Article 84.One.2.e) of Law 37/1992 to the operation presented.

The DGT's ruling

The taxpayer's investment is applicable when the transfer of real estate is intended to extinguish the guaranteed debt or the acquirer's obligation to extinguish it. This mechanism also applies to advance payments made prior to the public deed. To this end, the acquirer must be an entrepreneur or professional, and the operation must be a transfer of real estate held as security for a principal obligation.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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