Bookkeeping for freelancers in construction: deductions and key points
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
As a subcontractor you invoice with VAT reverse-charged and consumers at 9 or 21 per cent; investing more than 2,900 euros in a year gives you the small-scale investment deduction.
- The investment deduction is 28 per cent up to 71,683 euros and a fixed 20,072 euros above that.
- Work clothing is only deductible with a logo of at least 70 cm² or when it is clearly only suitable for work.
- Painting, plastering and insulating homes over two years old carry 9 per cent VAT.
- In painting and finishing, a pension fund can also require the self-employed to take part.
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 and machines that you use for several years are capitalised and depreciated; in practice a threshold of around 450 euros is often applied, the amount above which an asset also counts for the investment deduction. 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.
The four pillars of construction bookkeeping
Construction bookkeeping revolves around four things that touch other freelancers less: the reverse charge, project records, the van full of tools, and sector schemes that can reach freelancers too.
- Split your invoicing: reverse-charged VAT in subcontracting, 9 or 21 per cent for private clients. See the reverse charge in construction and painting and handyman work for consumers.
- Record per project: hours, materials and down payments per job, so you see margin per project and can substantiate additional work.
- The van and tools: capitalise and depreciate, with the investment deduction in the purchase year. Fuel and maintenance are running costs.
- Check the sector schemes: parts of construction and finishing have mandatory fund participation reaching freelancers too. See mandatory sector schemes.
Which VAT rate applies when
In construction the VAT rate depends on your client and on the work. These are the four situations a construction freelancer meets most often.
| Situation | VAT on your invoice | What to add |
|---|---|---|
| Subcontractor for a main contractor | Reverse-charged | The words 'VAT reverse-charged' plus your client's VAT number |
| Work on a home older than two years | 9% on the labour | Materials stay at 21%; split it on the invoice |
| Other work for private clients | 21% | Invoice with VAT as usual |
| Investment above € 2,900 in a year | No effect on VAT | But it qualifies for the small-scale investment deduction |
Frequently asked questions
Which VAT do I charge as a construction freelancer?
Subcontracting for a contractor: reverse-charged, no VAT on your invoice. Directly for consumers: 9 per cent for painting, plastering and insulating homes over two years old, 21 per cent for most other jobs.
Why do I get VAT back as a subcontractor?
Your turnover is reverse-charged, so you remit nothing, while paying 21 per cent on tools, materials and fuel. That balance is refunded every period; fastest with monthly filing.
Must I keep records per job?
Project records are not legally required, but they are the only way to see margin per job and substantiate additional work. Hours, materials and down payments per project suffice.
What about client down payments?
VAT on a down payment is due immediately in the period of invoicing or receipt, not at completion. See advances and down payments.
Does my van fall under the addition?
Yes, unless it is almost exclusively suited to carrying goods or stays at the business outside working hours. A complete trip log under 500 private kilometres also avoids it.
Is there a mandatory pension fund for construction freelancers?
In parts of construction and finishing, yes, including for the self-employed. Check the fund's mandatory-participation decree for your trade; contributions can be claimed retroactively.
Sources
- Small-scale investment deduction 2026Belastingdienst · belastingdienst.nl
- Costs for work clothingBelastingdienst · belastingdienst.nl
- Reverse charge for subcontracting and staff supplyBelastingdienst · 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.
