Painter, plasterer or handyman for private clients: how VAT works

Reverse charge: only in subcontracting, never to private clients

The reverse-charge scheme in construction applies to subcontracting and the hiring out of staff: you carry out physical work on immovable property on behalf of a contractor, and that contractor remits the VAT. Your invoice then states 'VAT reverse-charged' plus your client's VAT number, and you charge no VAT yourself.

If you work directly for a private client, there is nothing to reverse-charge. A private individual has no VAT number and files no VAT returns. So you simply invoice with VAT. The same applies when you work directly for a business as the main contractor without any subcontracting: you charge VAT yourself then too. The rule of thumb: you only reverse-charge when there is a contractor above you.

Painting and plastering: 9% for homes older than two years

For painting and plastering work on homes older than two years, the reduced 9% rate applies. That rate covers the whole job, including the materials you use, such as paint, filler and plaster. It must be a home, though: offices, shops and commercial buildings fall under 21%, regardless of their age.

You must be able to substantiate that the home is older than two years. Ask the resident for a statement or record the construction year, for example via the public buildings register. When in doubt, or for a home younger than two years, charge 21%. If you combine painting with other odd jobs, split the invoice: the painting part at 9%, the rest at 21%.

General handyman work: almost always 21%

General handyman work, such as renovating a bathroom, installing a kitchen, carpentry or tiling, falls under the standard 21% rate. Also for homes older than two years. The 9% rate in construction is an exception for specific services, such as painting, plastering, wallpapering and installing insulation material in homes older than two years. For insulation work, the 9% rate moreover only covers the labour, not the material.

If one job involves different types of work, be sharp about the split. A handyman business that plasters a living room (9%) and then builds a partition wall (21%) lists both items separately on the invoice, each with the correct rate.

Buying and passing on materials

Your purchases at the wholesaler or hardware store carry 21% VAT, which you reclaim as input tax. When you pass materials on to a private client, the rate of the service they belong to applies: paint in a 9% painting job goes at 9%, tiles in a 21% job at 21%. List materials and labour separately on the invoice, so it is clear to the client and the tax authorities what you charged.

Quotes, down payments and your records

Private jobs often involve a down payment. On an advance payment you owe VAT immediately in the period in which you invoice or receive the money, not only when the job is finished. So process down payments in your VAT return right away.

In addition, track your hours and materials per job. That substantiates your invoices, helps in discussions with clients and shows your real margin per project. If you drive a van full of tools, do not forget your kilometres or vehicle costs either: in construction they are often a substantial deduction.