- The question is about a company that provides repair and maintenance services for industrial machinery being used in the construction of a tunnel
- The reverse charge mechanism applies when the construction project is classified as building construction, rehabilitation, or land development
- The reverse charge does not apply when services are provided to the main contractor or subcontractors in a contract not related to construction or land development
- In this case, the repair and maintenance services do not meet the requirements for the reverse charge mechanism as they are not directly related to the construction of the building
- The recipient of the repair and maintenance services should pay the tax, even if they are part of a construction contract.
Source: www2.agenciatributaria.gob.es
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.
