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V3539-20 11 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive subject does not apply to modular constructions that can be moved without damage

A company asked whether the sale of modular commercial buildings allowed the inversion of the passive subject in VAT. The DGT replied that it does not apply if the modules can be moved to another location without damage, as they are not considered buildings.

The question raised

Applicability of the reverse charge mechanism provided for in Article 84.one.2.f) of Law 37/1992.

The DGT's ruling

The reverse charge mechanism requires the operation to be an execution of construction work or the rehabilitation of buildings. Modular constructions are only considered buildings if they are permanently attached to the ground and cannot be moved without damage to the material. If the module can be moved to another location without impairment to the object, it does not constitute a building and the reverse charge mechanism does not apply.

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