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V2832-14 20 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive subject applies to kitchen furniture and appliances in new builds under certain conditions

A real estate developer asks whether the installation of kitchen furniture and appliances in newly constructed buildings is subject to the inversion of the passive subject. The DGT confirms that it applies if the installation results in a benefit and is not merely a delivery of goods.

The question raised

Applicability of the reverse charge mechanism provided for in Article 84.One.2.f) of Law 37/1992 to the operations carried out by the consulting entity, specifically the issuance of invoices with or without the reverse charge for the latter activity, including appliances.

The DGT's ruling

The reverse charge mechanism applies to the supply with installation of goods in new construction buildings for a business recipient. The installation of kitchen furniture and appliances is considered a works contract if it goes beyond mere making available and seeks a specific result. Works contracts for the developer are taxed at 10%, whereas the delivery of appliances is taxed at 21%.

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