TVA reverse charge in case of subcontracting in the construction sector
Verified 23 September 2026 - Entreprendre Service Public / (Prime Minister), Ministry of Finance
In the building and public works (BTP) sector, the reverse charge of the TVA: titleContent shall apply where part of the works is made by a subcontractor on behalf of a client taxable person to the TVA. This means that the TVA is not reported or collected by the subcontractor that performs these works: it is the company that has used this subcontractor (the receiving company) that collects, reports and remits the TVA to the tax authorities.
In principle, the TVA is collected by the company (seller or supplier) from its customer (buyer) and then returned to the government.
In the building and public works sector (BTP), the mechanism is reversed if the outsourcing since the TVA is self-liquidated.
In other words, the TVA is collected and then paid back to the tax authorities, not by the company performing the service (the subcontractor) but by the company concerned, i.e. the company subcontractor's client.
The subcontractor who thus executes a part of the works does not charge the TVA to the company taking (the invoice is HT: titleContent however, it must be marked ‘reverse charge’).
The TVA is then charged to the end customer, i.e. the person or company who requested the works.
Warning
If the company takes forget to self-liquidate the TVA, it shall be sanctioned by a fine corresponding to 5% the deductible amount (i.e. the TVA).
Mandatory mention of an invoice concerning the reverse charge
The construction works concerned by the TVA reverse charge are the works for the construction of buildings and other immovable works.
These include the following works:
- Building works executed by different trades that participate in the renovation or building of buildings
- Public works and civil engineering works
- Building equipment works: incorporation of movable property into real estate (recessed appliances, pipes, etc.)
- Works for repairs or repairs to rehabilitate a building
- Cleaning operations that are in the extension of works or accessories to these works
Works must have been contracted out.
The relationship between the principal and the subcontractor must be established by means of a subcontracting contractor, failing that, by one of the following documents :
- Quote
- Signed purchase order
- Another document showing the agreement of will between the two companies concerning the realization of the subcontracted works and their price
TVA reverse charge in the construction sector (paragraph 2h)
The company taking must indicate the amount HT: titleContent services which have been provided to it and which are subject to reverse charge on the line ‘ Other taxable transactions ’ of its turnover statement.
Please note
If the subcontractor is subject to the TVA-based franchisethen, the company taking the loan does not have to pay TVA to the tax authorities.
The subcontractor does not collect the TVA, which applies to benefits subject to reverse charge. It must indicate these transactions in its turnover declaration in the line ‘ Other non-taxable transactions ». Even if he doesn't collect the TVA on these operations, he can deduct the TVA of its own expenses.
Mandatory mention of an invoice concerning the reverse charge
TVA reverse charge in the construction sector (paragraph 2h)
Penalty for forgetting the reverse charge
Building works in respect of immovable property made by a subcontracting company on behalf of a taxable lessee