VAT reverse charge in construction
Updated July 2026
In construction, when a contractor carries out immovable works for a VAT-registered client who files periodic VAT returns, VAT is not charged: it's the client (the co-contractor) who declares it. The invoice is VAT-free, with a reverse-charge mention. To a private individual, on the contrary, VAT is charged normally.
What is the reverse charge?
Also called the co-contractor regime, the reverse charge flips the VAT liability. Normally the provider charges and remits the VAT. Under the reverse charge, they don't charge it: the client (the recipient) declares the VAT due in their own return — and deducts it at the same time, where applicable.
When does it apply?
The three conditions must be met:
- These are immovable works (in the VAT sense)
- The provider is a VAT taxpayer established in Belgium
- The client is a VAT taxpayer required to file periodic VAT returns in Belgium
When does it NOT apply?
- Private client (B2C): VAT is charged normally (6% or 21%)
- VAT-registered client not required to file periodic returns (e.g. under certain schemes): cases to check
- Services that are not immovable works
The mandatory mention on the invoice
Under the reverse charge, no VAT amount appears. The invoice carries a mention such as "Reverse charge" (VAT to be paid by the co-contractor). That mention tells the client they must declare the VAT.
A concrete example
An electrician subcontractor invoices the main contractor of a site. Both are VAT-registered and file returns. The subcontractor therefore invoices without VAT, with the reverse-charge mention; the main contractor declares the VAT in their return.
The same electrician redoing the installation for a private individual charges VAT normally.
Why this mechanism exists
- To fight fraud: the provider does not collect VAT they might fail to remit
- To simplify the client's cash flow, who declares and deducts in one move
Common mistakes
- Charging VAT to a co-contractor when the reverse charge applies
- Forgetting the reverse-charge mention on the invoice
- Applying the reverse charge to a private client (wrongly)
Frequently asked questions
What is the "co-contractor"?+
It is the client (the recipient of the works) who, under this regime, becomes liable for the VAT: they declare it themselves instead of the provider charging it.
What mention goes on the invoice?+
A mention indicating the reverse charge, such as "Reverse charge" or "VAT to be paid by the co-contractor". No VAT amount is charged.
Does the reverse charge apply to individuals?+
No. Facing a private client (B2C), you charge VAT normally (6% or 21% depending on the case).
What if my client is under the VAT exemption?+
That is a case to check: the client must be required to file periodic returns for the reverse charge to apply. When in doubt, ask your accountant.
Read also
VAT 6% or 21% on renovation: the clear guideThe VAT exemption scheme for the self-employedB2B e-invoicing 2026: am I concerned?The right VAT rule, depending on the client
Afrimo recognises the case (individual, co-contractor…), removes the VAT and adds the reverse-charge mention when needed — with a check before sending. In FR/NL/EN.
This article is informational and does not constitute tax advice. The conditions have exceptions and may change: check your situation with the tax authorities or your accountant.