How VAT applies to your construction work as a self-employed contractor
As a self-employed contractor in Belgium, correctly applying VAT (Value Added Tax) to your construction or renovation work is essential. The applicable VAT rate, 21% or the reduced 6%, depends on the type of work and the client’s situation. Getting it wrong can lead to costly penalties, so it’s crucial to know exactly when the reduced rate applies and how to document it properly.
This guide explains:
✅ Who qualifies for the reduced rate
🧱 Which works are eligible
📋 Your obligations as a self-employed contractor
📜 The legal statement you must include on invoices
⚠️ Important: The standard VAT rate is 21%. Most construction works, including new buildings and commercial projects, are taxed at this standard rate. The reduced 6% rate only applies under specific conditions.
🧾 1. Conditions for applying the 6% rate
To legally apply the 6% reduced VAT rate, all the following conditions must be met:
✅ The property:
Is used exclusively or primarily as a private residence (not for commercial purposes)
Was first occupied at least 10 years ago (based on the calendar year of first occupation)
✅ The works:
Involve renovation, repair, transformation, improvement or maintenance (excluding routine cleaning)
Are carried out and invoiced by you as a professional
Are invoiced to the end user: the private individual (owner, tenant, usufructuary...) who uses the building as their main or sole residence
📜 The invoice must include this required legal statement:
Mandatory legal text to include in your invoices:
"VAT Rate: In the absence of a written dispute within one month of receiving the invoice, the client is presumed to acknowledge that:
(1) the works are carried out on a residential building whose first occupation occurred at least ten calendar years before the date of the first invoice for these works,
(2) that after completion, the building is used either exclusively or primarily as a private dwelling,
and (3) that the works are supplied and invoiced to a final consumer.
If any of these conditions are not met, the standard VAT rate of 21% will apply, and the client will be responsible for paying any additional VAT, interest, and applicable fines."
💡 Tip: You can add the mandatory mention in the notes section of your invoice, as shown in the screenshot!⬇️⬇️
🏗️ 2. Eligible works: reference table
Type of work | Description | VAT rate |
Interior works | WC, shower, bath, sink connected to plumbing, built-in bathroom furniture, fixed fans/ventilators | 6% |
| New electrical installation (wiring, sockets, etc.) | 6% |
| Lighting fully integrated into the ceiling | 6% |
| Fixed doorbells, fire detectors, anti-theft systems, intercoms | 6% |
| Central heating or air conditioning installation | 6% |
| Fixed stoves, radiators, individual heaters | 6% |
| Permanently connected electric convectors | 6% |
| Thermal insulation | 6% |
| Wall and floor coverings fixed or custom-fitted | 6% |
| Fireplace or open fire | 6% |
| Fitted kitchen (cabinets, sink, hood, etc.) | 6% |
| Sanding and varnishing parquet floors | 6% |
| Interior/exterior painting and wallpapering | 6% |
| Non-integrated lighting, removable lamps | 21% |
| Convectors plugged in only (not fixed) | 21% |
| Replacing appliances (e.g., built-in oven) | 21% |
Exterior works | Façade renovation (plastering, brickwork, moss removal, jointing, sandblasting) | 6% |
| Shutters, outdoor blinds | 6% |
| Attached veranda | 6% |
| Attached pergola | 6% |
| Attached terrace | 6% |
| Garage that is part of the home | 6% |
| Fuel tank removal (in a renovation context) | 6% |
| Garden works, fences, garden paths, pools, saunas, sheds, garden terraces | 21% |
Maintenance | Chimney sweeping, unclogging pipes | 6% |
| Elevator maintenance (even under contract) | 6% |
| Central heating maintenance (even under contract) | 6% |
| Pre-renovation cleaning (e.g., preparing surfaces) | 6% |
| Maintenance/repairs of 6%-eligible works | 6% |
| Routine household cleaning (vacuuming, mopping, window washing, etc.) | 21% |
📅 3. What changed in 2022
Since January 1, 2022, you no longer need to have your client sign a declaration. Instead, you must include the legal statement above in every invoice.
👉 If the client does not dispute the invoice within one month, they are presumed to accept that the conditions are met.
⚠️ 4. Responsibilities and risks
The 10-year age of the property is based on the calendar year of first occupation.
If you apply the 6% rate incorrectly:
You remain liable for any VAT due, unless the error depends solely on information only the client can confirm (e.g. private use).
The tax administration may demand corrections, including interest and fines.
🧰 Double-check with your client
📆 Is the property over 10 years old?
🏡 Is it used as the main residence?
👤 Is the client the end user (not a business or developer)?
🧾 Does the invoice contain the mandatory text?
✉️ Has the client refrained from disputing it within a month?
📧 Need help? Contact us at coach-fiscal@accountable.eu