Bookkeeping for the self-employed architect: instalments, copyright and liability
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
Design, advice and construction supervision always carry 21 per cent VAT: the reverse charge covers physical work, not an architect's services.
- Invoice per phase, so you do not pre-finance the project yourself.
- If a project runs past year-end, you value the completed part as work in progress.
- The copyright in your design stays with you unless you transfer it in writing.
- Limit your liability contractually and insure your professional risk; the premium is deductible.
A design process runs for months and sometimes years: sketch design, preliminary design, final design, permit application, construction. In that time you clock hours that are not yet invoiced, the brief changes, and a permit gets refused. For tax that raises three questions: when do you take profit, which VAT rate applies to whom, and who actually owns the design. This article covers them, plus the liability that comes with this profession.
VAT: always 21 per cent, including to the builder
Design, advice, construction supervision and inspection are services carrying 21 per cent VAT. Even when you work for a builder the reverse charge does not apply: it is meant for physical work on a building, not for design and advice. A builder asking you to invoice without VAT is therefore wrong; invoice without it anyway and you still owe the VAT. See reverse-charged VAT in construction for where the line runs.
If you work for a private client building or renovating a home, your fee is a final price including VAT for them: they can reclaim nothing. So always state the amount including VAT in your quote, otherwise the final bill disappoints. See writing a quote.
Invoicing in stages and work in progress
Agree an amount and an invoicing moment per phase: on commission, after the preliminary design, after the final design, on submitting the permit application and during construction. That way you do not finance the project yourself and the client knows where they stand. If you receive prepayments, invoice them straight away and declare the VAT in that period; see booking advances and deposits.
If a project runs past 31 December, the part you completed still counts in that year's profit, even if you invoice later. That is work in progress: you value it at the share of the agreed fee attributable to the work performed, less the instalments you already sent. See valuing work in progress.
Worked example: a renovation across year-end
- Agreed fee
- € 24,000 excluding VAT
- Completed at 31 December
- Preliminary and final design, 55%
- Instalments already invoiced
- € 9,600
- Work in progress on your balance sheet
- € 3,600
Result: Your profit for that year includes € 13,200 of revenue from this project. If you only invoice the next instalment in March, that is the moment for VAT, but for profit the work performed already counts.
Copyright on your design
An original design carries copyright, and it stays with you unless you transfer it in writing. What your client buys is usually the right to have the design built once. State that explicitly in your confirmation: what may the client do with the drawings, may they reuse them on a second plot, and what happens if they continue with another architect halfway.
That matters legally and as a pricing argument: unlimited reuse is worth more than a single build. Put it in your terms and conditions and refer to them in your quote. How to build your rate is covered in setting your hourly rate.
Liability, software and your other costs
An error in a structure or a missed building code requirement can cause damage many times your fee. Professional indemnity insurance is therefore standard in this field, and the premium is deductible. Also limit your liability contractually, for example to the fee for the assignment. See business insurance.
Your biggest fixed costs are software and hardware. An annual software subscription is deducted in the year itself; a workstation, drawing tablet or large monitor above € 450 excluding VAT is capitalised and depreciated, see capitalise or deduct at once. If you pass € 2,900 of investments in a year, the investment deduction is added. Your professional register entry, continuing education, trade literature and website are deductible too.
Frequently asked questions
May I invoice a builder without VAT?
No. The reverse charge covers physical work on a building, not design, advice or supervision. Your fee simply carries 21 per cent VAT.
What if the permit is refused?
The work you did remains billable as long as your assignment says so. So agree in advance which phases are paid, even if the project does not go ahead.
Does the copyright in my design stay with me?
Yes, unless you transfer it in writing. The client usually buys the right to have the design built once; agree reuse separately and charge for it.
Must I report work in progress if I have not invoiced yet?
Yes. The part of the work completed at 31 December counts in that year's profit. VAT is only due at the moment you invoice.
Sources
- Reverse charge for subcontracting and hiring out staffBelastingdienst · belastingdienst.nl
- Valuing work in progressBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
