From January 1, 2023, invoices for real estate work involving VAT reverse charge in Belgium must include a new mandatory and more detailed mention than the "co-contractor" one. This new mention aims to inform customers about their tax obligations and avoid non-compliance situations.

The new mandatory mention will be as follows: "The customer is required to declare and pay the VAT due to the tax administration under the reverse charge regime. In the absence of declaration and payment of the VAT due, the customer may be held responsible for the payment of tax, interest and penalties due."

This new mention only concerns real estate work involving VAT reverse charge. Existing rules continue to apply for other types of transactions subject to VAT reverse charge in Belgium.

Under Article 20 of Royal Decree No. 1, the co-contractor of the entrepreneur established in Belgium who carries out real estate work is required to pay the tax due as a result of this activity if they are themselves a taxable person established in Belgium (or if they are not established in Belgium, but have appointed a responsible representative) and are required to file periodic VAT returns.

It is important to note that the customer must inform the entrepreneur if they are not required to file periodic VAT returns at the time they communicate their VAT number to the entrepreneur. If this condition is not met, the customer may be held responsible for the payment of tax, interest and penalties due.

In conclusion, the new mandatory mention on real estate work invoices with VAT reverse charge in Belgium aims to clarify customers' tax obligations and avoid non-compliance situations. The companies concerned must comply with this new obligation from January 1, 2023, under penalty of having their responsibility engaged. This new regulation comes from the Royal Decree of 26/10/2022 modifying Royal Decrees nos. 1, 2, 3, 4, 10, 19, 22 and 59 regarding value added tax, Official Gazette November 10, 2022.