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V4764-16 10 November 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the passive party applies to kitchen cabinets and appliances in new builds under certain conditions

A real estate developer asks whether the sale and installation of kitchen cabinets and appliances is subject to the inversion of the passive party. The DGT responds that it applies whenever the installation constitutes part of construction work and the goods are incorporated into the building.

The question raised

Question raised: Application of the reverse charge mechanism.

The DGT's ruling

The reverse charge mechanism applies when the transaction is considered a construction work and the recipient is an entrepreneur or professional. The installation and assembly of kitchen furniture and appliances is considered a construction work if it goes beyond mere making available and the goods become incorporated into the building. It does not apply if it is a supply of materials without installation or if the goods are not incorporated.

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What is published here, applied to a company or a specific case. The first meeting is free.

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