{"id":31052,"date":"2026-08-21T03:30:44","date_gmt":"2026-08-21T01:30:44","guid":{"rendered":"https:\/\/www.accountable.eu\/help-center\/the-vat-co-contractor-scheme-in-belgium-when-and-how-reverse-charge-applies-to-construction-work\/"},"modified":"2026-08-21T03:30:44","modified_gmt":"2026-08-21T01:30:44","slug":"the-vat-co-contractor-scheme-in-belgium-when-and-how-reverse-charge-applies-to-construction-work","status":"publish","type":"help_center","link":"https:\/\/www.accountable.eu\/en-be\/help-center\/the-vat-co-contractor-scheme-in-belgium-when-and-how-reverse-charge-applies-to-construction-work\/","title":{"rendered":"The VAT co-contractor scheme in Belgium: when and how reverse charge applies to construction work"},"content":{"rendered":"

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If you carry out work on a building for a business client, you may not need to charge VAT at all, instead, your client reports and deducts it themselves. This is called the VAT co-contractor scheme<\/b> (in Dutch: btw-medecontractant<\/i>; in French: cocontractant TVA<\/i>), and it’s mandatory whenever the conditions are met. Here’s everything you need to know.<\/p>\n

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At a glance:<\/b><\/p>\n

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\u2705 Applies to work on real estate, between two VAT-registered parties (subject to VAT), for professional use<\/p>\n

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\u2705 The contractor charges 0% VAT, the client self-assesses and deducts it (a “zero-sum” operation)<\/p>\n

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\u2705 Mandatory, not optional, whenever the conditions are met<\/p>\n

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\ud83c\udfd7\ufe0f In a subcontracting chain, only the status of your direct client matters, not the final building’s use<\/p>\n

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\ud83d\udeab Can’t be combined with the reduced 6% VAT rate<\/p>\n

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\ud83d\udcdc Requires a specific legal statement on the invoice<\/p>\n

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\ud83d\udca1 What is the VAT co-contractor scheme?<\/h1>\n

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Normally, if you’re VAT-registered in Belgium, you charge VAT on your invoices and your client recovers it (if they’re entitled to) through their own VAT return.<\/p>\n

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For work on real estate, the law skips that back-and-forth. The contractor doesn’t charge VAT at all.<\/b> Instead, the client (the “co-contractor”) reports the VAT due directly on their own periodic VAT return<\/b> and in the same return, deducts it again if they’re entitled to. Since both entries happen in the same return, this is usually a zero-sum operation<\/b>: no VAT actually changes hands.<\/p>\n

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This is also known as the reverse charge for work on real estate<\/b>. <\/p>\n

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It’s not optional if the conditions below are met, you’re required to apply it.<\/p>\n<\/div>\n

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\u2705 When does the scheme apply? Three conditions<\/h1>\n

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All three of the following must be true for the reverse charge to apply:<\/p>\n

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  1. \n

    The work qualifies as “work on real estate”.<\/b><\/p>\n

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    \u2192 See the next section for what counts.<\/p>\n

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    The building is used for professional purposes<\/b>, in whole or in part.<\/p>\n

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    \u2192 A company building qualifies, but so does a private home that’s partly used as an office or shop.<\/p>\n

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    Except in a subcontracting chain. Here only the status of your direct client matters, not the final building’s use
    \u200b<\/p>\n<\/li>\n

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    Both you and your client are subject to VAT and file periodic VAT returns.<\/b><\/p>\n

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    \u2192 If your client is exempt (e.g. under the small business exemption scheme, or a private individual), the reverse charge doesn’t apply. You invoice with standard VAT instead.<\/p>\n<\/li>\n<\/ol>\n

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    \u2139\ufe0f The scheme applies regardless of what the client uses the reverse-charged VAT for<\/b> as long as they’re a taxable person who files periodic returns. <\/p>\n

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    It only stops applying if the building is used exclusively<\/b> for the private purposes of a VAT-registered individual. <\/p>\n<\/div>\n

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    \ud83e\uddf1 What counts as “work on real estate”?<\/h1>\n

    The legal term covers building, converting, finishing, fitting out, repairing, maintaining, cleaning, or demolishing something that is by nature immovable, plus supplying and fitting a movable item in a way that makes it immovable (e.g. a built-in kitchen).<\/p>\n

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    Usually covered<\/b><\/p>\n

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    Not covered<\/b><\/p>\n

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    Roof, fa\u00e7ade, or floor covering installation<\/p>\n

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    Painting work<\/p>\n

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    Extensions and construction work<\/p>\n

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    Sanitary installations fixed to the building (heat pump, A\/C, EV charging station)<\/p>\n

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    Electrical work<\/p>\n

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    Renovation, repair and maintenance of a building<\/p>\n

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    Devices not fixed to the building or the ground (e.g. a washing machine, a lamp, a printer)<\/p>\n

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    Simply supplying goods without installing them<\/p>\n

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    If you’re not sure whether a specific job qualifies, your tax coach can help you check.<\/p>\n<\/div>\n

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    \ud83d\udeab The 6% VAT rate and the co-contractor scheme don’t mix<\/h1>\n

    If the work qualifies for the reduced 6% VAT rate (renovation of a private home older than 10 years), you cannot also reverse charge the VAT.<\/b> The two regimes are mutually exclusive, reverse charge only applies at the standard 21% rate on professional-use real estate.<\/p>\n

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    Want the full breakdown of when the 6% rate applies? Check the article on correctly applying the 6% VAT rate for contractors<\/a>.<\/p>\n

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    \ud83c\udfe0 Mixed-use buildings: splitting the invoice<\/h1>\n

    If a building is used partly for professional purposes and partly for private purposes, you can still apply the co-contractor scheme, but only to the professional part. You’ll need to split the invoice<\/b> into two:<\/p>\n

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