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V2042-22 22 September 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

No applicable subject passive investment; Model 347 required

A civil society inquired whether Model 347 should be submitted for advances on the construction of a livestock shed and whether subject passive investment applies. The DGT determines that the shed is an accessory construction and not a building, thus the investment rule does not apply, and confirms the obligation to report if limits are exceeded.

The question raised

Obligation to submit Form 347 for the advance payments made for the construction of the building, and whether or not the reverse charge mechanism applies to Value Added Tax.

The DGT's ruling

The reverse charge mechanism does not apply because the livestock building is classified as an ancillary construction of an agricultural holding and not as a building. Business activity is considered to have commenced from the acquisition of goods with the intention of allocating them to said activity. Regarding Form 347, the civil society is obliged to submit the annual declaration of transactions with third parties if it exceeds the established limits, except for the applicable special regime exceptions.

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