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V2559-15 3 September 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Reverse charge mechanism applies to the construction of an annex canopy for an industrial warehouse under certain requirements

A construction company has enquired whether the installation of a canopy to extend a loading area in an industrial warehouse is subject to the reverse charge mechanism. The DGT has ruled that this mechanism applies provided that the work constitutes the construction or renovation of a building.

The question raised

Whether the reverse charge mechanism applies to said installation.

The DGT's ruling

The reverse charge mechanism applies when the work consists of the construction or rehabilitation of buildings and the recipient is a businessperson or professional. In this case, the canopy constitutes a building as it is an extension of the useful surface area of the industrial warehouse to which it is attached. For this to apply, the requirements for the execution of works and the status of the recipient as a businessperson must be met.

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