- The reverse charge mechanism (verleggingsregeling) under Article 12(5) Wet OB 1968 and Article 24b Uitvoeringsbesluit OB 1968 applies to the work performed by the subcontracted agricultural contractor (loonwerker).
- These activities are considered material works related to immovable property, such as crops in open ground, soil, and greenhouses.
- The term “material works” is interpreted broadly and includes maintenance and other services to trees, plants, crops, soil, greenhouses, and other immovable property.
- The regulation aligns with both historical EU authorizations and current EU VAT directives.
- Agricultural services to crops considered immovable property qualify as services related to immovable property, supporting the application of the reverse charge mechanism.
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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