- A company will manufacture and assemble a machine for a client.
- The client states that the project is part of the construction of a municipal waste treatment center.
- The question is whether the reverse charge rule of article 84.Uno.2º.f) LIVA applies to this project.
- The reverse charge rule applies when the project is classified as construction of buildings.
- The contract or subcontract derived from the project must be considered as construction works.
- The recipient of the project must act as an entrepreneur or professional.
- If there are multiple main contractors, the important factor is that the overall construction or rehabilitation of buildings is carried out.
- In this case, the installation of the machine is part of a building construction project, with the promoter as the recipient.
- The machine will be installed and incorporated into the property, and its installation is considered as construction works.
- Therefore, the reverse charge rule of article 84, section one, number 2º, letter f) LIVA applies.
Source: audiconsultores-etlglobal.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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