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V2206-17 4 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of passive subject does not apply to engineering and project management services

An engineering consultancy inquired whether its services in project management, project governance and market studies were subject to the passive subject inversion mechanism. The DGT has responded that these are service provisions which do not constitute works execution.

The question raised

Whether the reverse charge mechanism applies to said works.

The DGT's ruling

Investment project management services, drafting of technical projects, construction management, technical support for procurement management, administrative procedures, or grant management services, provided on an isolated basis, are service provisions that do not have the legal nature of works executions. Therefore, the reverse charge mechanism provided for in Article 84.One.2.f) of the VAT Law does not apply.

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