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V2372-21 20 August 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Requirements for applying the passive investor rule in construction or rehabilitation works execution

A gardening company asks whether its design and garden execution services can qualify for the passive investor rule. The DGT confirms that yes, provided the services are carried out for construction or rehabilitation of buildings between entrepreneurs.

The question raised

Question posed: Clarification of the concept of construction works and the requirement that landscaping works form part of the architect's construction project for the application of the taxpayer investment mechanism. Possibility of the landscaping project carried out by nursery technicians being valid for these purposes.

The DGT's ruling

Landscaping works are considered works executions. For the reverse charge mechanism to apply, the work as a whole must consist of urbanization, construction, or building rehabilitation. The recipient must be an entrepreneur or professional and the operation must derive from a works execution contract.

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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