What does reverse charge VAT on an invoice mean?
Reverse charge means that VAT is not charged by the seller. The customer calculates and declares the VAT themselves in their periodic return.
Reverse charge VAT: what you need to know
28/05/2025
If you work in the construction or renovation sector and invoice your services to other companies, you have probably already encountered the concept of reverse charge VAT, often also referred to as the “co-contractor regime”. Since 1 January 2023, the mandatory wording on the relevant invoices has been modified. Here is what you need to know to remain compliant.
What is reverse charge VAT?
Under the reverse charge mechanism, the responsibility for paying VAT is transferred from the supplier to the customer.
In practice, you do not indicate VAT on your invoice. Your customer calculates the VAT due themselves and includes it in their own return.
This mechanism applies when you carry out immovable works for a Belgian company that has a valid VAT number and is required to submit periodic VAT returns.
The activities concerned include in particular:
• construction works
• transformation works
• finishing works
• fitting-out works
• repairs
• maintenance
• cleaning of immovable property.
A mandatory statement on the invoice
Until the end of 2022, the mention “VAT reverse charged” was sufficient on the invoice.
Since 1 January 2023, a more comprehensive clause must be included:
“Reverse charge: In the absence of a written objection within one month from receipt of the invoice, the customer is deemed to acknowledge that they are a taxable person required to submit periodic returns. If this condition is not met, the customer shall bear, with respect to this condition, the responsibility for the payment of the tax, interest and fines due.”
This wording may seem technical. However, it offers an important advantage for the supplier. It explicitly transfers the responsibility for the correct payment of VAT to the customer.
In practice, you no longer need to verify yourself whether your customer is indeed a taxable person required to submit periodic returns.
Compliant invoicing without complications
Correct invoicing is a key element in applying the reverse charge regime. A missing or incorrect statement can lead to discussions during a tax audit.
PIA Go! simplifies this step. When the option “co-contractor: reverse charge of Belgian VAT from seller to buyer” is activated when creating an invoice, the VAT return is completed correctly and the mandatory legal statement automatically appears on the invoice.
One less check in your daily administration.
FAQ
When should you apply reverse charge?
This mechanism applies in particular to certain immovable works carried out for another VAT taxable person in Belgium. It may also apply in certain international transactions within the European Union.
What statement must appear on the invoice?
Since 2023, the invoice must include the full reverse charge clause. This statement specifies the customer’s responsibility regarding the payment of VAT.
To whom does this regime apply in Belgium?
It mainly applies to contractors and subcontractors active in the construction and renovation sector who work for other VAT taxable persons.
What happens if reverse charge is not applied correctly?
An incorrect invoice can lead to tax corrections and, in some cases, fines. Proper invoicing helps avoid these situations.
Written by Charlotte Backelandt , Marketing & Content Specialist,
reviewed by Tom Castelein, Personal Income Tax Expert.
reviewed by Tom Castelein, Personal Income Tax Expert.