On 20 September 2022 the Spanish Central Economic-Administrative Court has published a resolution setting the following new criterion on the reversal of the VAT taxable person:
In sales of real estate in which part of the price is used to cancel the charges levied on such properties, the reverse charge mechanism shall not apply, so the seller will be considered the VAT taxable person and, as such, it will have to charge output VAT to the purchaser, file a VAT return and pay the corresponding VAT to the Spanish Tax Authorities. In principle, this concerns mortgages, but the criterion should also apply to other charges, such as urban development charges.
Source Ashurst
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