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V5461-16 27 December 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · destinatario de la operación

The owner of the premises is the recipient of the repair work, not the party paying by court order

A contractor is required by court order to pay a third party for repairs to defects in premises owned by a company. The DGT has determined that the recipient of the transaction is the company that owns the premises, rather than the contractor making the payment.

The question raised

Recipient of the repair transaction.

The DGT's ruling

The recipient of the transaction is the creditor in the legal relationship where the entrepreneur is the debtor. In this case, the commercial entity that owns the premises is the recipient of the works execution, regardless of whether the material payment is made by the applicant by judicial mandate. The invoice must be issued in favor of the owner, who may deduct the tax amount if the legal requirements are met.

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