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Construction and renovation

Invoice under the Belgian VAT reverse charge

When subcontracting for another contractor, you often do not charge VAT. Your client, the co-contractor, accounts for it instead. Missing wording or the wrong regime can cause problems during an inspection.

When does reverse charge apply?

The Belgian co-contractor regime covers work on immovable property and certain equivalent transactions, such as installing particular systems, where the client is VAT-liable and files periodic VAT returns. This may be a main contractor, construction company or a company renovating its own building. It does not apply to private clients, exempt small businesses or anyone not filing periodic returns: charge 6% or 21% as appropriate.

Businesses performing work on immovable property cannot use the small-business VAT exemption, even with low turnover. A missing statutory statement or client VAT number makes the invoice incorrect and can lead to fines even where reverse charge was otherwise appropriate.

In ProFactuur

How to do it, step by step

  1. 1

    Select the co-contractor regime

    Choose Co-contractor (reverse charge, Belgium) for the invoice. All lines automatically exclude VAT, which the client accounts for, and cannot accidentally be overridden.

  2. 2

    Let the wording appear automatically

    The statutory reverse charge wording is added in the document language, together with the client’s VAT number.

  3. 3

    Set the client’s default

    For regular main contractors, save the regime on their client record so new invoices start with the correct settings.

  4. 4

    Send through Peppol

    Main contractors are VAT-liable, so send through Peppol. ProFactuur includes the correct VAT category in the UBL file for automatic recognition by the client’s software.

Example

Example: subcontracted electrical installation

An electrician installs the complete electrical system in an apartment building for a main contractor filing periodic VAT returns.

Cabling and switchgear, installed€14,800.00
Installation of distribution boards€3,200.00
Total excluding VAT€18,000.00
VAT under reverse charge€0.00
Amount payable€18,000.00

The main contractor pays €18,000.00 and accounts for 21% VAT in their return, usually deducting it at the same time.

Mandatory invoice wording

The invoice must state reverse charge and explain that the client is deemed to acknowledge being a taxable person filing periodic returns unless they dispute this in writing within one month. If that condition is not met, the client is liable for the VAT due, interest and fines. Selecting the co-contractor regime adds the full wording automatically in Dutch, French, English or German according to the document language.

Materials supplied without installation to the same main contractor do not generally qualify for reverse charge. Use separate invoices for those supplies and the property work, keeping one clear VAT regime per document and avoiding line-by-line separation by your accountant.

Frequently asked questions

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