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V2934-15 7 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Applicability of the reverse charge mechanism by the taxable person in exempt supplies of buildings with waiver of exemption

An entity requested clarification regarding the rectification of VAT amounts charged on the acquisition of a building. The DGT clarifies that if the transaction is an exempt supply but the exemption has been waived, the reverse charge mechanism shall apply.

The question raised

Rectification of output tax in the event that the reverse charge mechanism is applicable.

The DGT's ruling

In the supply of buildings exempt under Article 20.One.22 of Law 37/1992, if the acquirer is a taxable person with the right to full deduction and the exemption is waived, the reverse charge mechanism provided for in Article 84.One.2, letter e) of the Tax Law shall apply. For the waiver to be valid, it must be reliably communicated to the acquirer, and the acquirer must prove their status as a taxable person with the right to deduction.

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