- The reverse charge mechanism for subcontracting and lending of personnel is limited to specific sectors, namely construction, metal construction (related to immovable construction), and shipbuilding, as clarified by the Turnover Tax Knowledge Group.
- The mechanism does not apply when the entrepreneur does not engage in any physical work on immovable property; it is restricted to direct construction activities.
- Activities that are primarily facilitative in nature, such as providing a safe workplace for railway work or supplying traffic controllers for roadworks, do not qualify for the reverse charge mechanism, according to the knowledge group’s assessment.
Source Taxlive
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