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V2339-18 20 August 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Passive party's investment applies to mixed construction contracts for wind parks

A company developing wind parks asks whether civil works contracts for their construction are subject to the passive party's investment. The DGT determines that if the works are classified as construction or urbanisation, the investment applies to the entire operation, even in mixed contracts.

The question raised

Whether the reverse charge mechanism provided for in Article 84.One.2.f) of Law 37/1992 would apply to said contracts for work.

The DGT's ruling

The reverse charge mechanism applies to the taxable person if three requirements are met: the recipient must be an entrepreneur or professional, the work must consist of urbanization or the construction/rehabilitation of buildings, and the contract must be a contract for work. In mixed contracts that include services or goods, the reverse charge applies to the whole if the elements are ancillary to the execution of the work or form a single supply. Wind farms and wind turbines are considered buildings for this purpose.

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