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Bookkeeping for freelancers in construction: deductions and key points
Written by Ilias5 min read
As a freelancer in construction, whether you're a carpenter, plasterer, painter or odd-job business, you have bookkeeping with many cost items. Tools, materials, work clothing and transport add up considerably. In addition, you almost always deal with the VAT reverse-charge scheme if you work for other contractors. In this article we list the key points.
VAT reverse charge in construction
In construction the reverse-charge scheme often applies. If you work as a subcontractor for a main contractor, you don't charge VAT but reverse-charge it to your client. On your invoice you put 'VAT reverse-charged' and your client's VAT number. Your client then declares the VAT. This prevents fraud and is mandatory in many construction situations.
If you deliver directly to private individuals, you charge the normal 21 percent VAT, or 9 percent for certain work on homes older than two years such as painting. It's important to determine per assignment which scheme applies, because a wrong invoice can lead to corrections.
Depreciating tools and materials
Small tools and consumables can be deducted as costs all at once in the year of purchase. More expensive tools or machines above 450 euros are depreciated over several years. A company van, for example, is depreciated over five years. Keep your purchase receipts well, because these are often substantial amounts.
If you invest more than 2,900 euros in business assets in a year, you can use the small-scale investment deduction (KIA). That provides an extra deduction alongside the normal depreciation. For construction, with expensive machines and tools, this is often worthwhile.
Work clothing and transport
Work clothing is only deductible if it's genuinely work clothing: featuring a logo of at least 70 cm2 or clearly only suitable for work, such as overalls with a company name or safety shoes. Ordinary clothing you could also wear privately may not be deducted.
For your company van you deduct the costs of fuel, maintenance and insurance. If you drive a company car, watch the addition to taxable income. A watertight trip record helps to prevent discussion with the tax authorities.
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.
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