Reverse charge for works in immovable property: what has changed?

Old scheme 

Previously, the reverse charge mechanism for works in immovable property was applicable only if the customer established abroad had appointed an individually VAT representative. If a VAT taxpayer established abroad opted for the procedure of direct registration in Belgium, the reverse charge mechanism for works in immovable property did not apply. This distinction will no longer be made from 1 January 2023. 
 

Extension of scope 

Belgian service providers of works in immovable property may therefore no longer invoice using Belgian VAT in both the above cases. Note however that Belgian VAT will still be due on such service supplies, but it is the customer located abroad who must pay it through his periodic Belgian VAT returns.  

In addition to extending the scope of the reverse charge for works in immovable property for VAT taxable persons established abroad, there is also a need for new statements on the invoice regarding the reverse charge for works in immovable property.  

From 1 January 2023, the statement 'reverse charge' will no longer be sufficient. From now on, the invoice must contain the following mandatory statement when the reverse charge applies: 

"Reverse charge. In the absence of a written dispute within a period of one month from the receipt of the invoice, the customer shall be deemed to acknowledge that he is a VAT taxable person liable to submit periodic VAT returns. If that condition is not fulfilled, the customer shall be liable for payment of tax, interest and fines due in respect of that condition." 

 

Contact 

Do you have any questions on these new measures? Our VAT experts are available for further advice or assistance. Please email btw-tva@bdo for the attention of one of the members of the VAT team: