Justification of Subcontractor Status for the VAT Reverse Charge on Construction Subcontracting

• A sole proprietorship (JMC) in masonry, renovation and structural work had VAT recalled by the tax authorities on operations where JMC claimed the reverse charge (autoliquidation) applied under Art. 283-2 nonies CGI, on the basis that the works were subcontracted.
• The Court accepted the subcontracting qualification for three operations where JMC produced subcontracting declarations or payment delegations together with matching invoices bearing the “autoliquidation” mention. However, it rejected the qualification for other operations where no corroborating documents (subcontracting contracts, payment delegations) could be matched to the invoices or bank receipts.
• Key takeaway: To apply the VAT reverse charge on construction subcontracting, the taxpayer must produce a coherent documentary chain: subcontracting contract or payment delegation identifying the parties and the operation, invoices issued to the main contractor with the “autoliquidation” mention, and consistency between these documents and actual bank receipts.

🔗 External sources:

• Easytax – France: VAT Reverse Charge in the Construction Sector [easytax.co]
• Hayot Expertise – VAT Reverse Charge: Cases, Rules and Errors (2026) [hayot-expertise.fr]
• Invoice Data Extraction – France Reverse Charge Invoice: Autoliquidation de TVA Guide [invoicedat…action.com]