Doctrine by topic · DGT Observatory

Immobilization of Assets: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2014–2025

Current position

The supply of goods that requires installation or assembly prior to being made available is located in the territory where said installation is completed if it involves the immobilization of the goods. In this case, the operation is not considered an intra-Community acquisition or an assimilated operation. The established business customer must apply the reverse charge mechanism.

The DGT's position remains constant regarding the location of the operation according to the place where the installation involving immobilization is completed. The technical distinction between supplies of goods and the provision of services based on the cost of materials has been maintained. The doctrine confirms that, if the immobilization occurs in Spain, the operation is located here and does not constitute an intra-Community acquisition.

Turning points

  1. V0142-15

    Introduces the 40% cost of materials criterion to distinguish between the supply of goods and the provision of services.

Analysis based on 8 of 8 rulings with a stated position. Updated 13 October 2026.

Rulings on this topic

9
V0693-25 15 Apr 2025

Delivery of goods for installation subject to VAT if immobilisation occurs

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoinmovilización de bienesentrega de bienesservicios relacionados con bienes inmueblesempresario no establecido LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno
Affects CompanyExpat · Non-residentIndividual
V1315-18 21 May 2018

Furniture deliveries to a hotel in Canary Islands exempt from VAT

SG de Impuestos sobre el Consumo
entrega de bienesinstalación o montajeterritorio de aplicacióninmovilización de bienessujeción LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5.Uno.a
Affects CompanyExpat · Non-residentIndividual

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