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country-icon Belgique

01.20.23

Extension of application of reverse charge

Multiple countries use the reverse charge to reduce tax evasion and consequently reduce VAT gaps. The reverse charge mechanism operates by shifting the burden of paying VAT to the buyer rather than the supplier. This prevents the supplier from charging the VAT element but not paying VAT directly to the tax authorities. As a result, the reverse charge today is viewed as an effective measure by multiple EU Member States to regulate the flow of VAT to tax authorities.     Belgium has now extended the reverse charge mechanism to also cover the construction and public works sector and in doing so has widened the scope of services subject to fiscal policies that seek to control tax evasion.    

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