Extension of the reverse charge mechanism for the construction and public works sector

In principle, VAT is payable by the service provider or the seller of goods. However, the European directive allows Member States of the European Union, for domestic transactions carried out on their territories, to make the customer liable for VAT by application of the reverse charge mechanism.

Belgium has opted to apply this mechanism to the building and construction sector in order to combat tax evasion.

Source: easytax.co