Doctrine by topic · DGT Observatory

Supply with Installation: 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 10 rulings · 2014–2021

Current position

The reverse charge mechanism applies when the operation is an execution of works for urbanization, construction, or rehabilitation and the recipient is an entrepreneur or professional. The supply of goods with installation and assembly is considered an execution of works if the elements are incorporated into the building. The reverse charge does not apply to the mere supply of materials, in maintenance operations, or in installations carried out in buildings that are already completed.

The DGT's position has remained constant over time. The criterion focuses on distinguishing the execution of works from the mere provision of services or supplies, requiring that the installation involves the incorporation of goods into a building undergoing construction or rehabilitation.

Analysis based on 10 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10
V5478-16 28 Dec 2016

Application of passive party investment in construction and subcontracts

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoejecución de obraempresario o profesionalsuministro con instalaciónconstrucción de edificaciones LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno
Affects CompanyExpat · Non-residentIndividual
V4620-16 31 Oct 2016

Inversion of the passive party not applicable to office furniture supply

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoejecución de obrasuministro con instalaciónentrega de bienespromotor LIVA — Ley 37/1992 del IVA art. 84.Uno.2º.fLIVA — Ley 37/1992 del IVA art. 90.Uno
Affects CompanyExpat · Non-residentIndividual
V2726-16 15 Jun 2016

Application of passive investor rule to payment system installation works

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoejecución de obraconstrucción de edificacionessuministro con instalaciónasistencia técnica LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual

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