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V2513-17 5 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Manufacturing of metal structures without installation or assembly is classified as a supply of goods, not a construction service

A company sought clarification on whether the manufacturing of metal modules (structures, boilermaking, and piping) for clients who transport them abroad constitutes a construction service. The DGT ruled that, as no installation or assembly is performed, these operations are classified as supplies of goods rather than construction services.

The question raised

Whether the manufacturing of the referred structures by the applicant is considered a works contract within the terms provided for in article 84.One.2.f) of Law 37/1992.

The DGT's ruling

For the reverse charge mechanism to apply to the taxable person by way of a works contract, the supply must be subject to installation and assembly by the provider, going beyond mere making available. If the supplier does not perform the installation and assembly, the transaction is classified as a delivery of goods. In this case, as there is no installation, the reverse charge mechanism of article 84.One.2.f) of Law 37/1992 does not apply.

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