Doctrine by topic · DGT Observatory

Supply of Materials: 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 12 rulings · 2014–2023

Current position

Reverse charge for the taxable person only applies to operations that have the legal nature of works execution. The supply of goods that includes installation and assembly is considered works execution. The mere supply of materials without installation or assembly, such as concrete pumping or the delivery of prefabricated components, does not allow for the application of this mechanism, and IVA (Value Added Tax) must be charged on the invoice.

The DGT's position has remained constant since 2014. The criterion systematically distinguishes between supply with installation and assembly, which is works execution, and the pure supply of materials, which is not. No changes in the interpretation of the rule are observed throughout the sequence.

Analysis based on 12 of 12 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

12
V1635-23 9 Jun 2023

Supply of building materials does not constitute passive investment

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoejecución de obrasuministro de materialesempresario o profesionalentrega de bienes LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 5.uno
Affects CompanyExpat · Non-residentIndividual
V1496-22 22 Jun 2022

Supply of concrete depends on whether installation or mounting is included

SG de Impuestos sobre el Consumo
inversión del sujeto pasivoejecución de obrasuministro de materialesinstalación y montajeempresario o profesional LIVA — Ley 37/1992 del IVA art. 84.Uno.2º, letra f)RIVA — RD 1624/1992, Reglamento del IVA art. 24 quater
Affects CompanyExpat · Non-residentIndividual

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