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V3177-15 20 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive party applicable in land delivery as payment for urbanisation costs

A company asks whether delivering a plot to a compensation board to cover urbanisation costs allows the application of the inversion of the passive party. The DGT confirms that it does, as the delivery relates to an immovable subject to urbanisation obligations.

The question raised

Question posed: Application of the reverse charge rule contained in Article 84.One.2.e) to the transfer of the plot.

The DGT's ruling

The reverse charge mechanism under Article 84.One.2.e) of Law 37/1992 applies when a plot is transferred to the compensation board to satisfy urbanization debts. This occurs because the allocated plots are liable for the payment of outstanding urbanization fees due to their registration encumbrance. Therefore, the taxpayer must not charge VAT on said transfer.

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