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V3171-23 11 December 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of passive subject applied to urbanisation works and contributions

A fiduciary compensation committee asks whether it should apply the inversion of the passive subject to urbanisation works and contributions to its members. The DGT confirms that this mechanism applies when recipients are entrepreneurs or professionals.

The question raised

Whether the reverse charge rule provided for in Article 84.One.2.f) of Law 37/1992 would apply to said works and assessments for Value Added Tax purposes.

The DGT's ruling

The compensation board acts as the main entrepreneur and contractor for the urbanization works in its own name but on behalf of its members. The reverse charge mechanism applies to the execution of urbanization works and to the assessments levied by the board on members who hold the status of entrepreneurs or professionals. Owners acquire said status if they pay the assessments with the intention of allocating the land to a business or professional activity.

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