Doctrine by topic · DGT Observatory

Supply of Goods: 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 9 rulings · 2014–2024

Current position

The reverse charge mechanism in works contracts requires the contract to have the nature of a works contract, which includes the supply of goods that are subject to installation and assembly. The mere supply of materials or machinery without installation does not constitute a works contract. In these cases of delivery of goods without assembly, the supplier must charge IVA (Value Added Tax) on the invoice.

The DGT's position remains constant in the distinction between supply and works contracts. Throughout the rulings, it is reiterated that installation and assembly are determining elements for applying the reverse charge mechanism. No changes in criterion are observed, but rather a systematic confirmation of the nature of the operation.

Turning points

  1. V2832-14

    Establishes that the installation of goods in buildings can transform the supply into a works contract if it seeks a specific result.

Analysis based on 9 of 9 rulings with a stated position. Updated 29 September 2026.

Rulings on this topic

9
V3186-21 23 Dec 2021

Supply of equipment without installation excludes passive investment

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoejecución de obrasuministro de bienesinstalación y montajeempresario o profesional LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 4.dos
Affects CompanyExpat · Non-residentIndividual
V0383-21 25 Feb 2021

Installation with mounting may qualify for passive party VAT investment

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoejecución de obrainstalación y montajesuministro de bienesempresario o profesional LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno
Affects CompanyExpat · Non-residentIndividual
V4485-16 18 Oct 2016

Inversion of the passive party not applicable to supply of uninstalled goods

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoejecución de obrassuministro de bienesinstalación y montajerehabilitación de edificaciones LIVA — Ley 37/1992 del IVA art. 84.Uno.2º.f)LIVA — Ley 37/1992 del IVA art. 90.Uno
Affects CompanyExpat · Non-residentIndividual
V2286-14 5 Sept 2014

No subsidiary liability for the mere supply of stationery items

SG de Tributos
responsabilidad subsidiariaactividad económica principalsuministro de bienescertificado de estar al corrienteejecución de obras LGT — Ley 58/2003 General Tributaria art. 43.1.fLGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual

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