Key takeaways
- The standard VAT rate on construction and immovable work is 21%; the reduced 6% rate is a narrowly framed exception.
- The 6% rate covers the renovation of a private dwelling at least ten years old, invoiced directly to the final consumer.
- Between taxable businesses, the reverse charge applies instead: the contractor does not charge VAT.
- The invoice is what proves the regime: the rate for 6%, the 'Reverse charge' statement for business-to-business work.
The question comes up on every site: should you charge VAT at 21%, at 6%, or no VAT at all? In Belgium, construction and immovable work follows the standard rate of 21%, but two regimes depart from it: a reduced rate of 6% for renovating homes, and a reverse charge that shifts VAT to the client when the client is itself a business. Getting the regime wrong means an invoice to correct and, sometimes, a penalty.
These rules are not a commercial choice: they flow from the VAT Code and its royal decrees, and your client's status drives the treatment. This article explains what immovable work covers, on what conditions the 6% rate applies, and how the reverse charge works between businesses.
What "immovable work" covers
The notion is broader than it looks. For VAT purposes, immovable work covers the construction, conversion, completion, fitting-out, repair, maintenance and demolition of all or part of a building, as well as supplying and installing movable goods in a building so that they become part of it. Fitting a boiler, tiling a bathroom, insulating a roof or replacing window frames are therefore immovable work.
This classification matters because it governs both special regimes. Simply buying materials without installation remains an ordinary supply of goods, at the standard rate; it is the work on the building, labour included, that opens the door to the 6% rate and the reverse charge.
The standard 21% rate and the reduced 6% rate
By default, immovable work is subject to the standard rate of 21%. The reduced rate of 6% is an exception: it applies only if all its conditions are met, and the contractor remains responsible for the rate shown on its invoice. Where there is doubt, 21% prevails.
| Standard rate 21% | Reduced rate 6% | |
|---|---|---|
| Applies by default | ||
| Reserved for renovating a private dwelling | ||
| Requires a dwelling at least ten years old | ||
| Assumes invoicing to the final consumer |
The reduced rate is not limited to renovation: other headings cover, for example, social housing or certain works for people with disabilities. But the most common case, and the one that raises the most questions, is the renovation of a private dwelling. For a full view of Belgian rates, see VAT rates in Belgium.
The conditions for the reduced 6% rate on renovation
The 6% rate for renovation rests on a set of cumulative conditions: a single one missing sends you back to 21%. According to the FPS Finance, the dwelling must be at least ten years old and the work must be invoiced directly to the person occupying the home.
Conditions to meet for the 6% rate
Dwelling at least ten years old
The building's first occupation must go back at least ten years before the first invoice relating to the work.
Private-dwelling use
After the work, the building is used, exclusively or mainly, as a private dwelling.
Invoicing to the final consumer
The work is supplied and invoiced directly to the occupant (owner or tenant), not to an intermediary.
Eligible immovable work
The operation is immovable work; some exclusions remain, such as gardens, swimming pools or pure cleaning.
The proof of the regime has changed form. The attestation the client used to sign has been replaced, since 2022, by a detailed statement on the contractor's invoice. The contractor shows the rate applied; if the client believes the 6% rate is not justified, it has one month from the invoice date to say so in writing. Failing that, responsibility for the rate is shared under the rules in force.
Demolition and reconstruction: a separate 6% regime
Alongside renovation, demolishing a building and reconstructing a dwelling has benefited, since 2024, from a permanent 6% regime across the whole country. It is not the same as renovation: it covers a new build that replaces a demolished building.
For an individual client, the 6% rate assumes that the reconstructed dwelling is their sole and own home, with a limited habitable area (up to 200 m²), that they register their residence there and keep that use for at least five years. A declaration must be filed with the FPS Finance and its reference must appear on the invoices. The conditions differ for the sale of a reconstructed dwelling: for a project of that kind, confirm the threshold and the terms with the FPS Finance.
The reverse charge between businesses
The second regime has nothing to do with housing: it concerns immovable work carried out for a business. Article 20 of Royal Decree No. 1 provides that a contractor established in Belgium does not charge VAT when its client is a taxable person required to file periodic VAT returns (or a non-established taxable person that has appointed a responsible representative). The client then declares and pays the tax through its own return: this is the reverse charge.
The mechanism is neutral for a client with a right of deduction: it records the same VAT as due and as deductible in its return. The point is to avoid the contractor fronting VAT that the client would later recover. For how this mechanism works in general, see VAT reverse charge in Belgium.
Invoice the right VAT regime, first time
YouInv applies the correct rate or reverse charge and generates the required statements on your construction invoices.
Which regime applies to your invoice
Everything turns on the client's status. Facing an individual having their home renovated, the question is the rate: 6% if the conditions are met, 21% otherwise. Facing a taxable business required to file periodic returns, the rate question falls away: the reverse charge applies, and the contractor invoices without VAT.
| Individual client (final consumer) | Taxable business client | |
|---|---|---|
| 6% rate possible for renovation | ||
| 21% rate when conditions are not met | ||
| Reverse charge | ||
| VAT appears on the contractor's invoice |
The invoice is what materialises this choice: rate and base for a taxed operation, "Reverse charge" statement and a reference to the conditions for business-to-business work. Compliant invoicing software applies the right regime and inserts the expected statements, which cuts the risk of error and later correction.
Further reading
- VAT rates in Belgium: the standard rate, reduced rates and special cases.
- VAT reverse charge in Belgium: the reverse-charge principle, beyond construction work.
- Mandatory invoice details in Belgium: what an invoice must contain to be valid.
The authoritative source governs: the FPS Finance "Renovation - VAT rate" section.
What VAT rate applies to construction work in Belgium?
The standard rate is 21%. A reduced rate of 6% applies to the renovation and repair of a private dwelling at least ten years old, under conditions. Between two taxable businesses that file periodic VAT returns, the reverse charge applies instead: the contractor does not charge VAT.
What are the conditions for the reduced 6% rate on renovation?
The dwelling must be at least ten years old, used exclusively or mainly as a private dwelling, and the immovable work must be supplied and invoiced directly to the final consumer. The contractor issues a detailed invoice stating the rate applied; the client attestation has been replaced by that invoice statement.
What is the VAT reverse charge on construction work?
When a contractor carries out immovable work for a client who is itself a taxable person required to file periodic VAT returns, it does not charge VAT on its invoice: the client declares and pays the VAT through its own return. The mechanism is set out in Article 20 of Royal Decree No. 1.
What must a reverse-charge invoice state?
The invoice carries no VAT and states 'Reverse charge'. Since 2023 it must also specify that, failing a written objection within one month, the client is presumed to be a taxable person required to file periodic returns and bears, on that basis, responsibility for paying the tax.
Can the 6% rate and the reverse charge be combined?
No. The 6% rate targets a final consumer having their private dwelling renovated. The reverse charge targets a relationship between two taxable businesses. The two regimes do not apply to the same invoice: you are in one or the other depending on your client's status.
