Doctrine by topic · DGT Observatory

Insolvency Proceedings: 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 15 rulings · 2014–2024

Current position

In the transfer of real estate within insolvency proceedings, the reverse charge mechanism applies if the acquirer is an entrepreneur or professional. This rule is applicable in both the common phase and the liquidation phase, including the agreement phase. If the acquirer is a final consumer or an individual, the taxable person is the transferor, who must charge the VAT at the general rate.

The DGT's position remains constant regarding the application of the reverse charge mechanism for real estate in insolvency proceedings when the acquirer is an entrepreneur or professional. The rulings confirm that this rule covers all phases of the procedure, including the agreement. No doctrinal changes are observed, but rather a reiteration of the criterion regarding the status of the acquirer.

Turning points

  1. V1552-22

    It is specified that the reverse charge rule also applies during the agreement phase, as it is considered part of the insolvency proceedings.

Analysis based on 14 of 15 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

15
V0271-24 29 Feb 2024

VAT deduction on community fees: requirements for business members

SG de Impuestos sobre el Consumo
derecho a la deduccióncomunidad de propietariosinversión del sujeto pasivobase imponibledocumento justificativo LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual
V2246-14 2 Sept 2014

VAT treatment in sales contract rescission and mortgage foreclosures

SG de Impuestos sobre el Consumo
resolución de la compraventaejecución hipotecariainversión del sujeto pasivofactura rectificativaproceso concursal LIVA — Ley 37/1992 del IVA art. 8.Dos.3ºLIVA — Ley 37/1992 del IVA art. 75.Uno.1º
Affects CompanyExpat · Non-residentIndividual

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