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V3037-18 26 November 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Reverse charge mechanism does not apply to the supply of precast concrete at the construction site

The requesting entity asks whether the supply of precast concrete for real estate construction is subject to the reverse charge mechanism. The DGT rules that, as these are deliveries of goods rather than works contracts, this mechanism does not apply.

The question raised

Appropriateness of applying the reverse charge mechanism provided for in Article 84.One.2º.f) of Law 37/1992 to the operations carried out by the consulting entity.

The DGT's ruling

The supply of precast concrete at the construction site is considered a delivery of goods and not the execution of works. Therefore, the reverse charge mechanism provided for in Article 84.One.2º.f) of Law 37/1992 does not apply. For the reverse charge to operate, the transaction must have the legal nature of the execution of works, with or without the provision of materials.

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