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V2014-15 26 June 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

The reverse charge mechanism applies to urbanization levies, including expenses prior to the material execution of the works

A compensation board has requested a ruling on whether the taxpayer's investment deduction applies to contributions for prior expenses (such as lawyers and architects) incurred before the start of urbanisation works. The DGT has ruled that it does, provided that the members of the board act with the intention of allocating the land for sale or transfer.

The question raised

Question raised 1st Application of the reverse charge mechanism provided for in Article 84.One.2, letter f) of Law 37/1992, from the constitution of the compensation board until the effective commencement of the corresponding urbanization works executions.

The DGT's ruling

La inversión del sujeto pasivo opera en las derramas por servicios previos a la ejecución material de las obras, como estudios o trámites administrativos. Los juntacompensantes adquieren la condición de empresarios o profesionales desde la primera derrama de costes de urbanización, siempre que tengan la intención de afectar el suelo resultante a la venta, cesión o adjudicación posterior. No es necesario establecer un plazo máximo para el inicio de la ejecución material de las obras para que se cumpla este supuesto.

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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