Procedures for Value
Added Tax for Services
Connected with
Immovable Property
in Particular EU Member
States (27)
Published by
Centre for Regional Development of the CR
Prepared by Mrs. Jitka Ryšavá
September 2012
Acknowledgments:
Authors of the brochure would like to thank to colleagues from the
Enterprise Europe Network. Without their help this brochure could not
have been created.
This publication originated as a part of the Enterprise Europe Network
project supported by the Competitiveness and Innovation Framework
Programme (CIP) of the European Commission and the Czech Ministry of
Industry and Trade. Neither the European Commission nor the Ministry of
Industry and Trade are responsible for information provided in this
publication. It is intended for information purposes only and does not
substitute expert consultancy. The authors therefore accept no liability for
any eventual damage that might arise as a result of the practical
application of the information and recommendations given herein.
Neither the EACI (European Agency for Competitiveness and Innovation)
nor the European Commission nor any person acting on their behalf may
be held responsible for the content and their use or for any errors which,
despite careful preparation and checking, may appear.
2
Content
Brief Introduction.............................................................................................................................. 5
Situation in Particular EU Member States (27) ..................................................................... 7
Austria ............................................................................................................................................... 7
Belgium ............................................................................................................................................. 8
Bulgaria ............................................................................................................................................ 8
Cyprus ............................................................................................................................................... 9
Czech Republic ............................................................................................................................. 10
Denmark......................................................................................................................................... 11
Estonia ............................................................................................................................................ 11
Finland ............................................................................................................................................ 12
France ............................................................................................................................................. 13
Germany......................................................................................................................................... 14
Greece ............................................................................................................................................. 15
Hungary .......................................................................................................................................... 15
Ireland............................................................................................................................................. 16
Italy .................................................................................................................................................. 17
Latvia ............................................................................................................................................... 18
Lithuania ........................................................................................................................................ 19
Luxembourg .................................................................................................................................. 19
Malta ................................................................................................................................................ 20
Netherlands ................................................................................................................................... 21
Poland.............................................................................................................................................. 21
Portugal .......................................................................................................................................... 22
Romania ......................................................................................................................................... 23
Slovakia .......................................................................................................................................... 23
Slovenia .......................................................................................................................................... 24
3
Spain................................................................................................................................................ 25
Sweden ........................................................................................................................................... 26
United Kingdom ........................................................................................................................... 27
4
Brief Introduction
The aim of the brochure is to inform about Value Added Tax (VAT)
procedures for services connected with immovable property in all EU
Member States. Each state covers:
 Information about particular Act on VAT with appropriate link (the act
in is the most cases available only in the respective national language).
 Information about particular articles which deal:
 with place of supply of services connected with immovable
property,
 with the procedure for payment of VAT.
 Short conclusions.
Reverse charge is a procedure used for Value Added Tax. It means that
goods or services are not owed by the supplier/provider, but they are
owed by the buyer/recipient of the goods or services.
The Directive 2006/112/EC on Common System on Value Added Tax as
amended (http://eurlex.europa.eu/Notice.do?val=437183:cs&lang=en&list=561945:cs,561946
:cs,490744:cs,462097:cs,462096:cs,462095:cs,462094:cs,462093:cs,46
2092:cs,437183:cs,&pos=10&page=1&nbl=10&pgs=10&hwords where
also consolidated versions of the Directive can be found) has changed the
rules governing Value Added Tax significantly from January 2010. This is
particularly truth in case of supply of services. The supply of services is
defined as "...any transaction which does not constitute a supply of
goods…" (article 24 of the modified Directive 2006/112/EC).
The definition of the place of supply of services has been completely
changed (see modified articles 44 and 45 of the Directive 2006/112/EC).
Basic principles:
B2B – business-to-business: The place of supply of services to a
taxable person acting as such shall be the place where that person has
established his business. In such cases so called reverse charge is
compulsorily applied, which means that VAT shall be payable by any
taxable person, or non-taxable legal person identified for VAT purposes, to
whom the services referred to are supplied, if the services are supplied by
a taxable person not established within the territory of the same Member
State.
5
B2C – business-to-customer: The place of supply of services to a nontaxable person shall be the place where the supplier has established his
business.
These principles have a number of important exceptions (mentioned in
articles 46 – 59) where the above mentioned rules are not applied, the
most important examples of such exceptions are following:
 Services connected with immovable property: taxation to VAT in the
Member State where the immovable property is located;
 Supply of passenger transport: VAT of the place where the transport
takes place, proportionate to the distances covered;
 Short-term hiring of means of transport: VAT of the place where the
means of transport is actually put at the disposal of the customer;
 Cultural, artistic, sporting, scientific, educational, entertainment and
similar services, such as fairs and exhibitions: VAT of the place where
activities in respect of admission of a taxable person are physically
carried out;
 Restaurant and catering services: VAT of the place where those
services are physically carried out.
In such cases reverse charge may be applied if the supply of services is
performed between two VAT payers: it is always necessary to check this in
the legislation of the particular Member State.
Member States can be divided according to the procedures for VAT
payment:
1. Some of them apply reverse charge system also for services
connected with immovable property in case that both a supplier and a
recipient are VAT payers and the supplier does not have a company or
a fixed establishment in the country, where the service connected with
immovable property is provided.
EU Member States which apply reverse charge also for services
connected with immovable property
Austria
France
Poland
Belgium
Germany*
Portugal
Cyprus
Hungary
Romania
Czech Republic
Italy
Slovakia
Denmark
Latvia
Spain
Estonia
Malta
Sweden*
Finland*
Netherlands
United Kingdom
*with some exceptions
6
2. Some of them do not apply reverse charge system also for services
connected with immovable property. It means that the service supplier
must register for VAT purposes in this country and pay the VAT
himself.
EU Member States which do not apply reverse charge for services
connected with immovable property
Bulgaria*
Ireland*
Luxembourg
Greece
Lithuania*
Slovenia*
*with some exceptions
In case that the recipient of the services connected with immovable
property is a non-taxable person, the supplier must register for VAT
purposes in all EU Member States and pay the VAT himself, there.
Situation in Particular EU Member States (27)
Austria
VAT rates applied for services connected with immovable property:
Standard rate 20%
Act on VAT - Umsatzsteuergesetz 1994 (UStG) - as amended (in German)
http://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&
Gesetzesnummer=10004873
Services connected with immovable property:
§ 3a (9) of the Act on VAT
http://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&
Gesetzesnummer=10004873
Reverse charge and services connected with immovable property:
§ 19 of the Act on VAT
http://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&
Gesetzesnummer=10004873
(More information about reverse charge in Austria in English available here
http://english.bmf.gv.at/Tax/VATAssessmentRefund/SupplyinginAustria/Reversecharge/_
start.htm),more information about VAT in Austria in English can be found here
http://english.bmf.gv.at/Tax/VATAssessmentRefund/SupplyinginAustria/_start.htm).
Conclusions:
In Austria, reverse charge is generally applied for services with
7
the place of supply in Austria if the recipient is a company or a
legal person VAT registered in Austria and if the service
provider (taxable person in his country of origin) does not have
a company or a fixed establishment in Austria (or with a fixed
establishment in Austria which is not intervening in the
concerned transaction). It means that reverse charge is applied
also for services connected with immovable property.
Belgium
VAT rates applied for services connected with immovable property:
Standard rate 21%, in some cases reduced rates 12% or 6%
Act on VAT – Code de la TVA - as amended (in French and in Flemish)
http://ccff02.minfin.fgov.be/KMWeb/document.do?method=view&id=53e3
0e9d-6466-4426-a57c-85b118905806#findHighlighted
Services connected with immovable property:
Article 21 § 2.1° of the Act on VAT
http://ccff02.minfin.fgov.be/KMWeb/document.do?method=view&id=53e3
0e9d-6466-4426-a57c-85b118905806#findHighlighted
Reverse charge and services connected with immovable property:
Article 51 § 2 of the Act on VAT
http://ccff02.minfin.fgov.be/KMWeb/document.do?method=view&id=53e3
0e9d-6466-4426-a57c-85b118905806#findHighlighted
Conclusions:
In Belgium, reverse charge is applied also for services
connected with immovable property if the recipient of the
service is a Belgian taxable person and if the service provider
(VAT payer in his country of origin) does not have a company
or a fixed establishment in Belgium.
Bulgaria
VAT rates applied for services connected with immovable property:
Standard rate 20%
8
Act on VAT – ЗАКОН ЗА ДАНЪК ВЪРХУ ДОБАВЕНАТА СТОЙНОСТ - Value
Added Tax Act (VATA) - as amended
http://www.nap.bg/en/document?id=112 (in English)
http://lex.bg/laws/ldoc/2135533201 (in Bulgarian)
Services connected with immovable property:
Art. 21 (4) 1 of the Value Added Tax Act (VATA)
http://www.nap.bg/en/document?id=112
Reverse charge and services connected with immovable property:
Art. 95 (2) of the Value Added Tax Act – obligatory registration
Article 82 (2) of the Value Added Tax Act – exception for delivery of
services mounted or installed by or at the expense of the provider
http://www.nap.bg/en/document?id=112
Conclusions:
In Bulgaria, reverse charge is not applied for majority of
services connected with immovable property. It means that the
service supplier has to register for VAT and pay VAT in Bulgaria
himself.
The exception exists – for deliveries of services mounted or
installed by or at the expenses of the provider: in case the
recipient is a person, registered under this Act and the provider
is settled on the territory of another EU Member State; the
recipient is obliged to pay VAT.
Cyprus
VAT rates applied for services connected with immovable property:
Standard rate 17%, in some cases reduced rate can be 0%
Act on VAT – Ν. 95(I)/2000 ΤΟΥ ΦΟΡΟΥ ΠΡΟΣΤΙΘΕΜΕΝΗΣ ΑΞΙΑΣ - as
amended (in Greek)
http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/C65BA685536DC0CBC22572
3C002FECFB/$file/N95(I)2000.pdf?Openelement
Services connected with immovable property:
Page 5 and following of the amendment of the Act on VAT
http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/FF80F898CE4C81D6C22577
06002E2D3A/$file/N13-1-1-2010AMEND-I4233_A1_P1.pdf?Openelement
Reverse charge and services connected with immovable property:
9
Page 5 and following of the amendment of the Act on VAT
http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/FF80F898CE4C81D6C22577
06002E2D3A/$file/N13-1-1-2010AMEND-I4233_A1_P1.pdf?Openelement
Conclusions:
In Cyprus, reverse charge is applied also for services
connected with immovable property if the recipient of the
service is a Cypriot taxable person and if the service provider
(VAT payer in his country of origin) does not have a company
or a fixed establishment in Cyprus.
Czech Republic
VAT rates applied for services connected with immovable property:
Standard rate 20% (from 2013 21%), in some cases reduced rate 14%
(from 2013 15%)
Act on VAT – Zakon o dani z pridane hodnoty 235/2004 Sb. - as amended
(in Czech):
http://business.center.cz/business/pravo/zakony/dph/
Services connected with immovable property:
§ 10 of the Act on VAT
http://business.center.cz/business/pravo/zakony/dph/cast1h2d2.aspx
Reverse charge and services connected with immovable property:
§ 108 of the Act on VAT
http://business.center.cz/business/pravo/zakony/dph/cast1h4.aspx#par1
08
Conclusions:
In the Czech Republic, reverse charge is applied also for
services connected with immovable property if the recipient of
the service is a Czech taxable person (or a person identified for
VAT) and if the service provider (VAT payer in his country of
origin) does not have a company or a fixed establishment in
the Czech Republic.
10
Denmark
VAT rates applied for services connected with immovable property:
Standard rate 25%
Act on VAT - Lov om merværdiafgift (momsloven) - as amended (in
Danish)
https://www.retsinformation.dk/forms/r0710.aspx?id=135905
Services connected with immovable property:
§ 18 of the Act on VAT
https://www.retsinformation.dk/forms/r0710.aspx?id=135905
Reverse charge and services connected with immovable property:
§ 46 3) of the Act on VAT
https://www.retsinformation.dk/forms/r0710.aspx?id=135905
(More information in English
http://www.skat.dk/getFile.aspx?Id=65704)
Conclusions:
In Denmark, reverse charge is applied also for services
connected with immovable property if the recipient of the
service is a Danish taxable person and if the service provider
(VAT payer in his country of origin) does not have a company
or a fixed establishment in Denmark.
Estonia
VAT rates applied for services connected with immovable property:
Standard rate 20%, in some cases reduced rate 9%
Act on VAT – Käibemaksuseadus - as amended
http://www.legaltext.ee/et/andmebaas/tekst.asp?loc=text&dok=X70060K
5&keel=en&pg=1&ptyyp=RT&tyyp=X&query=k%E4ibemaksu (in English)
http://www.legaltext.ee/et/andmebaas/tekst.asp?loc=text&dok=X70060K
5&pg=1&tyyp=X&query=k%E4ibemaksu&ptyyp=RT&keel=et (in Estonian)
Services connected with immovable property:
§ 10 (2) 1) of the act on VAT
http://www.legaltext.ee/et/andmebaas/tekst.asp?loc=text&dok=X70060K
5&keel=en&pg=1&ptyyp=RT&tyyp=X&query=k%E4ibemaksu
11
Reverse charge and services connected with immovable property:
§ 411 (1) and (2) 1) of the act on VAT
http://www.legaltext.ee/et/andmebaas/tekst.asp?loc=text&dok=X70060K
5&keel=en&pg=1&ptyyp=RT&tyyp=X&query=k%E4ibemaksu
(More information about VAT in Estonia in English
http://www.emta.ee/index.php?id=1839)
Conclusions:
In Estonia, reverse charge is generally applied for services with
the place of supply in Estonia if the recipient is a company or a
legal person VAT registered in Estonia and if the service
provider (taxable person in his country of origin) does not have
a company or a fixed establishment in Estonia. It means that
reverse charge is applied also for services connected with
immovable property.
Finland
VAT rates applied for services connected with immovable property:
Standard rate 23%
Act on VAT - Arvonlisäverolaki 30.12.1993/1501 - as amended (in English
Value Added Tax Act)
http://www.finlex.fi/en/laki/kaannokset/1993/en19931501.pdf (in English,
unfortunately, does not cover the latest amendments)
http://www.finlex.fi/fi/laki/ajantasa/1993/19931501 (in Finish)
Services connected with immovable property:
Article 65 of the Value added Tax Act
http://www.finlex.fi/en/laki/kaannokset/1993/en19931501.pdf
Reverse charge and services connected with immovable property:
See part - 6 Foreign business selling or buying construction-related
services (as of 1 April 2011) of the VAT registration of foreigners in
Finland
http://www.vero.fi/enUS/Precise_information/International_tax_situations/VAT_registration_of_
foreigners_in_Finlan(14701)#Foreignbusinesssellingorbuyingconstructionrelatedservices
12
See also Reverse charge in value added taxation in the construction sector
from 1 April 2011
http://www.vero.fi/enUS/Precise_information/Value_added_tax/Reverse_charge_in_value_adde
d_taxation_i(14870)
Conclusions:
In Finland, reverse charge is applied for a great number of
services connected with immovable property if the recipient is
a business selling building services on an ongoing basis in
Finland if the service provider (VAT payer in his country of
origin) does not have a company or a fixed establishment in
Finland. Various exceptions exist, when the reverse charge is
not applied – namely:
 Installation of plant used for the production.
 Architectural services, planning and design work, other
engineering and technical services.
 Outdoor cleaning services (including roads, driveways,
parks, airports).
 Building maintenance, etc.
France
VAT rates applied for services connected with immovable property:
Standard rate 19,6%, in some cases reduced rates 7%, 5,5% or 2,1%
Act on VAT - Code général des impôts – as amended (in French)
http://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT0000060
69577
Services connected with immovable property:
Article 259A 2°of the Act on VAT
http://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000
021644615&cidTexte=LEGITEXT000006069577&dateTexte=20120302&fa
stPos=1&fastReqId=1056444996&oldAction=rechCodeArticle
13
Reverse charge and services connected with immovable property:
Article 283 1 of the Act on VAT
http://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000
025074010&cidTexte=LEGITEXT000006069577&dateTexte=20120302&ol
dAction=rechCodeArticle
Conclusions:
In France, reverse charge is generally applied for services with
the place of supply in France if the recipient is a company or a
legal person VAT registered in France and if the service
provider (taxable person in his country of origin) does not have
a company or a fixed establishment in France. It means that
reverse charge is applied also for services connected with
immovable property.
Germany
VAT rates applied for services connected with immovable property:
Standard rate 19%
Act on VAT – Umsatzsteuergesetz – UStG - as amended (in German)
http://www.gesetze-im-internet.de/ustg_1980/
Services connected with immovable property:
§ 3a (3) 1 of the Act on VAT
http://www.gesetze-im-internet.de/ustg_1980/__3a.html
Reverse charge and services connected with immovable property:
§ 13b (2) 4 of the Act on VAT
http://www.gesetze-im-internet.de/ustg_1980/__13b.html
Conclusions:
In Germany, reverse charge is applied for majority of services
connected with immovable property if the recipient of the
service is a company or a legal person VAT registered in
Germany and if the service provider (VAT payer in his country
of origin) does not have a company or a fixed establishment in
Germany. Two exceptions exist – design and monitoring
services, when reverse charge is not applied.
14
Greece
VAT rates applied for services connected with immovable property:
Standard rate 23%
Act on VAT - NOMOΣ ΥΠ’ ΑΡΙΘ 3763 Ενσωμάτωση Οδηγιών 2006/98/ ΕΚ,
2008/8/ΕΚκαι 2007/ 74/EK, διατάξεων των Οδηγιών 2006/112/ΕΚ και
2006/ 69/ΕΚ, διατάξεις φορολογίας εισοδήματος, κεφα− λαίου, ΦΠΑ και
λοιπών φορολογιών και λοιπές διατάξεις. (In English Law number 3763 of
2009 - Incorporation of Directives 2006/98/EC, 2008/8/EC and
2007/74/EC, clauses of Directives 2006/12/EC and 2006/69/EC, clauses of
income tax policy, of capital tax, of VAT and other taxation and other
clauses) - as amended (in Greek)
http://www.minfin.gr/contentapi/f/binaryChannel/minfin/datastore/aa/44/0b/aa440b9b949c452a779daf
44cdd62cd87f6d309b/application/pdf/3763-2009-80-x_2009_05_27.pdf
Services connected with immovable property:
Article 22 paragraph 4 of the above mentioned Law (3763/2009
incorporating EU directives)
http://www.minfin.gr/contentapi/f/binaryChannel/minfin/datastore/aa/44/0b/aa440b9b949c452a779daf
44cdd62cd87f6d309b/application/pdf/3763-2009-80-x_2009_05_27.pdf
Reverse charge and services connected with immovable property:
Reverse charge is not applied for services connected with immovable
property in Greece. VAT is paid in Greece.
Conclusions:
In Greece, the VAT for services connected with immovable
property is usually paid through a representative - agent in
Greece if the service provider is a business settled in another
EU Member State.
Hungary
VAT rates applied for services connected with immovable property:
Standard rate 27%
Act on VAT - 2007. évi CXXVII. törvény, az általános forgalmi adóról - as
amended (in Hungarian)
http://net.jogtar.hu/jr/gen/hjegy_doc.cgi?docid=A0700127.TV
Services connected with immovable property:
15
§ 39 of the Act on VAT
http://net.jogtar.hu/jr/gen/hjegy_doc.cgi?docid=A0700127.TV
Reverse charge and services connected with immovable property:
§ 140 of the Act on VAT
http://net.jogtar.hu/jr/gen/hjegy_doc.cgi?docid=A0700127.TV
Conclusions:
In Hungary, reverse charge is applied also for services
connected with immovable property if the recipient of the
service is a Hungarian taxable person and if the service
provider (VAT payer in his country of origin) does not have a
company or a fixed establishment in Hungary.
Ireland
VAT rates applied for services connected with immovable property:
Standard rate 23%, in some cases reduced rate 13,5%
Act on VAT – VAT Consolidation Act 2010 - as amended
http://www.revenue.ie/en/practitioner/law/notes-for-guidance/vat/vatconsolidation-act2010.pdf
Services connected with immovable property:
Section 34 (c) of the Act on VAT
http://www.revenue.ie/en/practitioner/law/notes-for-guidance/vat/vatconsolidation-act2010.pdf
Reverse charge and services connected with immovable property:
Section 12 (2) of the Act on VAT – covers only a limited part of services
connected with immovable property
Section 16 (3) of the Act on VAT – in case that a “principal contractor”
exists, this principal contractor is responsible for any VAT due.
http://www.revenue.ie/en/practitioner/law/notes-for-guidance/vat/vatconsolidation-act2010.pdf
(Additional information in English
VAT treatment of services connected with immovable property
http://www.revenue.ie/en/tax/vat/leaflets/vat-on-servcies-connected-with-immovableproperty.html
Foreign suppliers doing business in Ireland
http://www.revenue.ie/en/tax/vat/leaflets/foreign-suppliers.html
16
VAT on property guide http://www.revenue.ie/en/tax/vat/leaflets/propertyguide/index.html)
Conclusions:
In Ireland, reverse charge is not applied for majority services
connected with immovable property. It means that the service
supplier has to register for VAT and pay VAT in Ireland himself.
These concern namely following services:
 Construction and related services.
 Hotel accommodation.
In case that a principal contractor for the services mentioned
above exists, this principal contractor is responsible for any
VAT due (including of VAT dues of his subcontractors).
For services others than named above, the reverse charge is
applied if the recipient is a company or a legal person VAT
registered in Ireland and if the service provider (VAT payer in
his country of origin) does not have a company or a fixed
establishment in Ireland.
Italy
VAT rates applied for services connected with immovable property:
Standard rate 21%, in some cases reduced rate 10% or 4%
Act on VAT - Decreto del Presidente della Repubblica del 26 ottobre 1972
n. 633 - as amended (in Italian)
http://def.finanze.it/DocTribFrontend/decodeurn?urn=urn:doctrib::DPR:1
972-10-26;633
Services connected with immovable property:
Article 7 C 1. a) (in Italian Articolo 7 quater 1. a)) of the Act on VAT:
http://def.finanze.it/DocTribFrontend/decodeurn?urn=urn:doctrib::DPR:1
972-10-26;633
Reverse charge and services connected with immovable property:
Article 17 of the Act on VAT:
http://def.finanze.it/DocTribFrontend/decodeurn?urn=urn:doctrib::DPR:1
972-10-26;633
17
Conclusions:
In Italy, reverse charge is generally applied for services with
the place of supply in Italy. It means that reverse charge is
applied also for services connected with immovable property if
the recipient is a company or a legal person VAT registered in
Italy and if the service provider(taxable person in his country
of origin) does not have a company or a fixed establishment in
Italy.
Latvia
VAT rates applied for services connected with immovable property:
Standard rate 22%
Act on VAT - 09.03.1995 Par pievienotās vērtības nodokli - as amended
http://www.google.cz/url?sa=t&rct=j&q=&source=web&cd=2&ved=0CGo
QFjAB&url=http%3A%2F%2Fwww.vid.gov.lv%2Fdokumenti%2Ftiesibu_ak
ti%2Flikumi%2F2011%2Fvalue_added_tax.doc&ei=RuwT83eHs3mtQapmumjBA&usg=AFQjCNFG1HPPAtm_52nPWof6duxDv0VJA (in English, does not cover amendments after 25
March 2010)
http://www.likumi.lv/doc.php?id=34443 (in Latvian)
Services connected with immovable property:
Section 41 (8) of the Act on VAT
http://www.likumi.lv/doc.php?id=34443
Reverse charge and services connected with immovable property:
Section 12 (117) of the Act on VAT
http://www.likumi.lv/doc.php?id=34443
Conclusions:
In Latvia, reverse charge is applied also for services connected
with immovable property if the recipient of the service is a
taxable person and if the service provider (VAT payer in his
country of origin) does not have a company or a fixed
establishment in the Latvia.
18
Lithuania
VAT rates applied for services connected with immovable property:
Standard rate 21%
Act on VAT – Valstybés žinios - as amended (in Lithuanian)
http://www.infolex.lt/ta/66285#Xb166d84449314ab6b1dccf019da03c70
Services connected with immovable property:
Article 13 (in Lithuanian straipsnis 13), paragraph 4 of the Act on VAT
http://www.infolex.lt/ta/66285#Xb166d84449314ab6b1dccf019da03c70
Reverse charge and services connected with immovable property:
Article 71 of the Act on VAT
http://www.infolex.lt/ta/66285#Xb166d84449314ab6b1dccf019da03c70
Conclusions:
In Lithuania, reverse charge is not applied for majority of
services connected with immovable property. It means that the
provider - foreign taxable person - must be identified
(registered) for VAT purposes in Lithuania and calculate and
pay VAT into the Lithuanian budget.
Exception from this rule are services of letting and leasing
immovable properties that are not subject to VAT.
Luxembourg
VAT rates applied for services connected with immovable property:
Standard rate 15%, in some cases reduced rates 6% or 3%
Act on VAT – Loi du 12 fevrier 1979 concernant la taxe sur la valeur
ajoutee - as amended (in French)
http://www.aed.public.lu/tva/loi/Loi_TVA_2012.pdf
Services connected with immovable property:
Article 17/2/2° of the Act on VAT
http://www.aed.public.lu/tva/loi/Loi_TVA_2012.pdf
Reverse charge and services connected with immovable property:
Article 17/2/2° of the Act on VAT - also means that reverse charge is not
applied for services connected with immovable property
19
Article 26/2 of the Act on VAT - states that service provider who is obliged
to pay VAT in Luxembourg must register, there
http://www.aed.public.lu/tva/loi/Loi_TVA_2012.pdf
Conclusions:
In Luxembourg, reverse charge is not applied for services
connected with immovable property. It means that the service
provider – a foreign taxable person - must be identified
(registered) for VAT purposes in Luxembourg and therefore
calculate and collect VAT for the Luxembourgish budget.
Malta
VAT rates applied for services connected with immovable property:
Standard rate 18%
Act on VAT – Chapter 406 Value Added Tax Act - as amended
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&ite
mid=8872
Services connected with immovable property:
Third schedule (Article 7), Part Two 4 of the of the Value Added Tax Act
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&ite
mid=8872
Reverse charge and services connected with immovable property:
Article 20, paragraph (2) (b) of the of the Value Added Tax Act
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&ite
mid=8872
(Rules concerning VAT for services can be found in a short “Guide on the New Place of
Supply of Services Rules” published by the VAT Department of the Ministry of Finance of
Malta http://vat.gov.mt/docs/Place%20of%20Supply%20of%20Services_EN_vers01.pdf)
Conclusions:
In Malta, reverse charge is applied also for services connected
with immovable property if the recipient of the service is a
Maltese taxable person (or a non-taxable legal person
identified for VAT purposes) and if the service provider (VAT
payer in his country of origin) does not have a company or a
fixed establishment in Malta.
20
Netherlands
VAT rates applied for services connected with immovable property:
Standard rate 19%, in some cases reduced rate 6%
Act on VAT – Wet op de omzetbelasting 1968 - as amended (in Dutch)
http://wetten.overheid.nl/BWBR0002629/geldigheidsdatum_06-06-2012
Services connected with immovable property:
Chapter 2, section 1 b, paragraph 2, article 6 b of the Act on VAT
http://wetten.overheid.nl/BWBR0002629/HoofdstukII/Afdeling1b/Paragra
af2/Artikel6b/geldigheidsdatum_06-06-2012
Reverse charge and services connected with immovable property:
Chapter 2, section 4, article 12. 2 of the Act on VAT
http://wetten.overheid.nl/BWBR0002629/HoofdstukII/Afdeling4/Artikel12/
geldigheidsdatum_06-06-2012
(Additional information in English:
The VAT owed is levied from the buyer of the service
http://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/business/
vat/vat_in_the_netherlands/supplying_services/the_vat_owed_is_levied_from_the_buyer
_of_the_service)
Conclusions:
In the Netherlands, reverse charge is applied also for services
connected with immovable property if the recipient of the
service is a Dutch taxable person and if the service provider
(VAT payer in his country of origin) does not have a company
or a fixed establishment in the Netherlands.
Poland
VAT rates applied for services connected with immovable property:
Standard rate 23%, in some cases reduced rates 8%, 5% or 0%
Act on VAT – Ustawa o podatku od towarów i usług - as amended (in
Polish)
http://www.vat.pl/przepisy/
http://www.przepisy.gofin.pl/przepisy,3,32,32,670,55524,20120101,miejs
ce-swiadczenia-przy-swiadczeniu-uslug.html (with 20 executive decrees)
21
Services connected with immovable property:
Article 28e of the Act on VAT
http://www.vat.pl/att/przepisy/VAT_2012.pdf
Reverse charge and services connected with immovable property:
Article 28e of the Act on VAT and article 100, paragraph 10 of the Act on
VAT
http://www.vat.pl/att/przepisy/VAT_2012.pdf
Conclusions:
In Poland, reverse charge is applied also for services connected
with immovable property if both the recipient and the provider
of the service are VAT payers and if the service provider does
not have a company or a fixed establishment in Poland. If the
service provider is registered in Poland for VAT purpose, the
reverse charge rule does not apply.
Portugal
VAT rates applied for services connected with immovable property:
Standard rate 23%, in some cases reduced rate 6% (in Madeira Island –
standard rate 22%, reduced rate 5%, in Azores – standard rate 16%,
reduced rate 4%)
Act on VAT - Código sobre o Valor Acrescentado (CIVA) - as amended (in
Portuguese)
http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributari
os/civa_rep/index_iva.htm
Services connected with immovable property:
Article 6, paragraph 8, subparagraph a) of the Act on VAT
http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributari
os/civa_rep/iva6.htm
Reverse charge and services connected with immovable property:
Article 2, paragraph 1, subparagraph a) and g) of the Act on VAT
http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributari
os/civa_rep/iva2.htm
Conclusions:
In Portugal, reverse charge is applied also for services
22
connected with immovable property if the recipient of the
service is a Portuguese taxable person and if the service
provider (VAT payer in his country of origin) does not have a
company or a fixed establishment in Portugal.
Romania
VAT rates applied for services connected with immovable property:
Standard rate 24%, in some cases reduced rate 5%
Act on VAT – Codul Fiscal cu normele metodologice de aplicare - as
amended (in Romanian)
http://static.anaf.ro/static/10/Anaf/Cod_fiscal_norme_2012.htm
Services connected with immovable property:
Article 133, paragraph (4) a) of the Codul Fiscal
http://static.anaf.ro/static/10/Anaf/Cod_fiscal_norme_2012.htm#_Toc304
299914
Reverse charge and services connected with immovable property:
Article 150, paragraph (6) of the Codul Fiscal
http://static.anaf.ro/static/10/Anaf/Cod_fiscal_norme_2012.htm#_Toc304
299945
Conclusions:
In Romania, reverse charge is applied also for services
connected with immovable property if the recipient of the
service is a Romanian taxable person and if the service
provider (VAT payer in his country of origin) does not have a
company or a fixed establishment in Romania.
Slovakia
VAT rates applied for services connected with immovable property:
Standard rate 20%
Act on VAT - Zakon o dani z pridanej hodnoty 222/2004 Z. Z. - as
amended (in Slovak)
http://www.porada.sk/t7176-zakon-o-dani-z-pridanej-hodnoty-od-01-012012-a.html#15
23
Services connected with immovable property:
§ 16 (1) of the Act on VAT
http://www.porada.sk/t7176-zakon-o-dani-z-pridanej-hodnoty-od-01-012012-a.html#15
Reverse charge and services connected with immovable property:
§ 69 (2) of the Act on VAT
http://www.porada.sk/t7176-zakon-o-dani-z-pridanej-hodnoty-od-01-012012-a.html#15
Conclusions:
In Slovakia, reverse charge is applied also for services
connected with immovable property if the recipient of the
service is a taxable person which has a set, a place of
business, an establishment or a residence in Slovakia. In
addition, the service provider (VAT payer in his country of
origin) must not have a company or a fixed establishment in
Slovakia.
Slovenia
VAT rates applied for services connected with immovable property:
Standard rate 20%, in some cases reduced rate 8,5%
Act on VAT - Zakon o davku na dodano vrednost published in the Official
Gazette 13/2011 - as amended
http://www.durs.gov.si/fileadmin/durs.gov.si/pageuploads/Obrazci_ANG/
VALUE_ADDED_TAX_ACTZDDV-1-_UNOFFICIALTRANSLATION.pdf (in
English)
http://www.uradni-list.si/1/objava.jsp?urlid=201113&stevilka=554 (in
Slovenia)
Services connected with immovable property:
Article 27 of the Act on VAT
http://www.uradni-list.si/1/objava.jsp?urlid=201113&stevilka=554
Reverse charge and services connected with immovable property:
Articles 78 and 79 of the Act on VAT deal with the obligation to register for
VAT in Slovenia also for services connected with immovable properties.
Article 76a of the Act on VAT - exceptions for which it is not necessary to
24
register for VAT for services connected with immovable property.
http://www.uradni-list.si/1/objava.jsp?urlid=201113&stevilka=554
Conclusions:
A foreign supplier providing services connected to immovable
property in Slovenia is in many cases obliged to register for
VAT purposes in Slovenia and consequently calculate and pay
Slovene VAT. Reverse charge system for services connected to
immovable property is therefore in these cases not applicable.
Exceptions:
a) Construction work including repair, cleaning, maintenance, alteration
and demolition services in relation to immovable property;
b) Supply of staff involved in the performance of activities referred to in
the preceding point;
c) Supply of immovable property referred to in points 7 and 8 of Article
44 of this Act (on VAT) provided that the supplier has opted for taxation
in accordance with Article 45 of this Act;
d) Supply of waste, residues and used material and services referred to in
Annex IIIa to this Act.
In above mentioned cases, reverse charge is applied also for
services connected with immovable property if the recipient of
the service is a taxable person which has a set, a place of
business, an establishment or a residence in Slovenia; the
service provider (VAT payer in his country of origin) must not
have a company or a fixed establishment in Slovenia.
Spain
VAT rates applied for services connected with immovable property:
Standard rate 18%, in some cases reduced rate 8%
Act on VAT – Ley 37/1992, de 28 de diciembre, del Impuesto sobre el
Valor Añadido - as amended (in Spanish)
http://noticias.juridicas.com/base_datos/Fiscal/l37-1992.html
Services connected with immovable property:
Article 70 1 of the Act on VAT
http://noticias.juridicas.com/base_datos/Fiscal/l37-1992.html
25
Reverse charge and services connected with immovable property:
Article 84 2 of the Act on VAT
http://noticias.juridicas.com/base_datos/Fiscal/l37-1992.html
Conclusions:
In Spain, reverse charge is applied also for services connected
with immovable property if the recipient of the service is a
Spanish taxable person and if the service provider (VAT payer
in his country of origin) does not have a company or a fixed
establishment in Spain.
Sweden
VAT rates applied for services connected with immovable property:
Standard rate 25%
Act on VAT - Mervärdesskattelag (1994:200) - as amended (in Swedish)
http://www.notisum.se/rnp/sls/lag/19940200.htm
Services connected with immovable property:
Chapter 5 (each Chapter is numbered by articles from the beginning),
article 8 of the of the Act on VAT
http://www.notisum.se/rnp/sls/lag/19940200.htm
Reverse charge and services connected with immovable property:
Chapter “Reverse charge of VAT” of the “VAT Brochure” issued by the
Swedish Tax Agency (SKV 552B Edition 11):
http://www.skatteverket.se/download/18.71004e4c133e23bf6db8000948
81/552B11.pdf
Conclusions:
In Sweden, reverse charge is applied for majority of
constructions services if the recipient of the service is a
company or a legal person VAT registered in Sweden (which
deals with construction services not only temporarily) and if
the service provider (VAT payer in his country of origin) does
not have a company or a fixed establishment in Sweden.
Various exceptions exist – namely:
 Caretaking including minor repairs, planting/maintenance of
green areas.
26
 Architectural activities, construction, consulting and project
management.
 Installation and assembly of industrial equipment, etc.
United Kingdom
VAT rates applied for services connected with immovable property:
Standard rate 20%, in some cases reduced rates 5% or 0%
Act on VAT – Value Added Tax Act 1994 - as amended
http://www.legislation.gov.uk/ukpga/1994/23/contents
Reverse charge and services connected with immovable property:
Section 6 (Services relating to land) of the HMRC (Her Majesty Revenue
and Customs) Reference Notice 741A “Place of supply of services”:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebAp
p.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PRO
D1_029955&propertyType=document#P236_31282
Reverse charge and immovable property:
Section 18 (Reverse charge), paragraph 18.11 of the HMRC (Her Majesty
Revenue and Customs) Reference Notice 741A “Place of supply of
services”:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebAp
p.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PRO
D1_029955&propertyType=document#P1027_129359
Conclusions:
In the United Kingdom, reverse charge is applied for majority
of services connected with immovable property if the recipient
of the service is a company or a legal person which is UK VAT
registered and if the service provider (VAT payer in his country
of origin) does not have a company or a fixed establishment in
the UK.
co-funded by the
27