New Option for VAT Payment by Client Effective from July 30, 2025

• The tax is paid by the client after notifying the Revenue Agency.
• From July 30, 2025, clients can opt to pay VAT for services under contracts like subcontracting or logistics services.
• The option is exercised using a specific form approved by the Revenue Agency.
• The form is submitted electronically using the free software available on the Revenue Agency’s website.
• The option to transfer VAT payment to the client is bilateral, involving both the provider and the client.
• The client must issue a declaration confirming the joint exercise of the option with the provider.
• The special VAT payment arrangement should be evaluated by both parties involved in the contract.
• Article 9 of DL 84/2025 allows the option between contractors and subcontractors.
• Each subcontracting relationship is considered independent for exercising the option.
• In subcontracting, the “client” is the subcontracting party, and the “provider” is the subcontractor.
• The form requires specific codes for subcontracting relationships.

Source: eutekne.info

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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