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  • Writer's pictureDavid Bultreys

Real estate : the VAT co-contractor regime



  • Who should apply it?

The co-contracting VAT scheme, also known as the reverse charge, must be applied when real estate work is carried out between two taxable persons who are required to file periodic monthly or quarterly returns.


The following are therefore covered:

- The ordinary taxable person

- The mixed taxable person


The following are therefore not covered:

- Franchised taxable persons

- Taxable person not established in Belgium

- Exempt taxable persons


  • For which types of work?


§ 2 of Article 20 of the Royal Decree n°1 (translation):


"any real estate work within the meaning of Article 19 par. 2 of the Code.

The following are also covered, insofar as they are not real estate work

1° any operation involving both the supply and attachment to a building of:

a) all or part of the components of a central heating or air-conditioning installation, including burners, tanks and regulation and control devices connected to the boiler or radiators

(b) all or part of the components of a sanitary installation in a building and, more generally, all fixed appliances for sanitary or hygienic purposes connected to a water or sewage pipe

(c) all or part of the components of an electrical installation in a building, excluding lighting fixtures and lamps

(d) all or part of the components of an electrical bell installation, a fire detection and burglary protection installation, an indoor telephone installation

(e) storage cabinets, sinks, sink cabinets and sink units, washbasin cabinets and washbasin units, hoods, fans and ventilators in a kitchen or bathroom

(f) shutters, blinds and awnings placed outside the building;

(2) any operation involving both the supply and the placing in a building of wall or floor coverings, whether they are fixed to the building or whether the placing requires only a simple cutting, on the spot, to the dimensions of the surface to be covered

3° any work of fixing, placing, repairing, maintaining and cleaning the goods referred to in 1° or 2° above.

The provision of personnel for the execution of real estate work or one of the operations referred to in 1°, 2° or 3° above is also covered."



  • What is the mandatory wording on invoices?

Mandatory legal statement: "Reverse charge".



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