Construction services : What does it mean?

In order to have a clear view on the European VAT compliance obligations of your company, you need to understand how VAT regulations treat differents kind of transactions. The EU VAT system defines two type of transactions: supplies of goods and of services.

We describe below the key aspects of construction services.

Let's take an example

Your company based in Romania has signed a contract for the erection of an industrial warehouse in Poland. Your workers will be temporarily dispatched on the worksite.


The Expert's eye

Construction businesses faced common issues and challenges. Companies acting in the construction sector must pay attention to the following issues:

  • Check whether or not a local reverse charge has been implemented in the country where the immovable property is located and if applicable in their relation with their client as well as in their relation with their sub-contractors [if any]. Many countries have however introduced local reverse charge in the construction sector [anti-fraud measures];
  • In case no reverse charge is applicable, proceed to the local VAT registration;
  • Check if the physical presence in the country during a certain period does not create a fixed establishment for VAT purposes [reallocating all purchases services in Poland] ;


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Bernard Ickowicz

+ 32 (0) 4 96 52 60 06