Scope of Reverse Charge Mechanism Limited to Construction, Metal Construction, and Shipbuilding Sectors

• Entrepreneur A provides services related to the railway network in the Netherlands, ensuring a safe workplace for various tasks such as cleaning, painting, maintenance, and pruning.
• A’s services include safety guidance, deactivating and securing railway sections, and providing tools and vehicles for third-party work.
• A is often hired by companies qualifying as contractors under article 24b of the 1968 VAT Implementation Decree.
• The inspector determined A’s service as a single, indivisible service facilitating a safe work environment for railway infrastructure, which is considered immovable for VAT purposes.
• Entrepreneur B is a staffing agency specializing in traffic guidance and security for roadworks on national highways in the Netherlands.
• Traffic guides manage traffic, place and remove cones and barriers, and highways are considered immovable for VAT purposes.
• Question 1: Is the reverse charge mechanism limited to construction, metal construction (for immovable structures), and shipbuilding sectors?
• Question 2: Does the reverse charge mechanism apply to A and B’s activities?
• Answer 1: Yes, the reverse charge mechanism is limited to the specified sectors.
• Answer 2: No, the reverse charge mechanism does not apply to A and B’s activities.
• Discussion for Question 1: The reverse charge mechanism is limited to construction, metal construction (for immovable structures), and shipbuilding sectors.

Source: kennisgroepen.belastingdienst.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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