Procedures for Value Added Tax for Services Connected with

Published by

Centre for Regional Development of the CR

Prepared by Mrs. Jitka Ryšavá

September 2012

Procedures for Value

Added Tax for Services

Connected with

Immovable Property

in Particular EU Member

States (27)

2

Acknowledgments:

Authors of the brochure would like to thank to colleagues from the

Enterprise Europe Network. Without their help this brochure could not

have been created.

This publication originated as a part of the Enterprise Europe Network

project supported by the Competitiveness and Innovation Framework

Programme (CIP) of the European Commission and the Czech Ministry of

Industry and Trade. Neither the European Commission nor the Ministry of

Industry and Trade are responsible for information provided in this

publication. It is intended for information purposes only and does not

substitute expert consultancy. The authors therefore accept no liability for

any eventual damage that might arise as a result of the practical

application of the information and recommendations given herein.

Neither the EACI (European Agency for Competitiveness and Innovation)

nor the European Commission nor any person acting on their behalf may

be held responsible for the content and their use or for any errors which,

despite careful preparation and checking, may appear.

3

Content

Brief Introduction.............................................................................................................................. 5

Situation in Particular EU Member States (27) ..................................................................... 7

Austria ............................................................................................................................................... 7

Belgium ............................................................................................................................................. 8

Bulgaria ............................................................................................................................................ 8

Cyprus ............................................................................................................................................... 9

Czech Republic ............................................................................................................................. 10

Denmark......................................................................................................................................... 11

Estonia ............................................................................................................................................ 11

Finland ............................................................................................................................................ 12

France ............................................................................................................................................. 13

Germany......................................................................................................................................... 14

Greece ............................................................................................................................................. 15

Hungary .......................................................................................................................................... 15

Ireland ............................................................................................................................................. 16

Italy .................................................................................................................................................. 17

Latvia ............................................................................................................................................... 18

Lithuania ........................................................................................................................................ 19

Luxembourg .................................................................................................................................. 19

Malta ................................................................................................................................................ 20

Netherlands ................................................................................................................................... 21

Poland.............................................................................................................................................. 21

Portugal .......................................................................................................................................... 22

Romania ......................................................................................................................................... 23

Slovakia .......................................................................................................................................... 23

Slovenia .......................................................................................................................................... 24

4

Spain ................................................................................................................................................ 25

Sweden ........................................................................................................................................... 26

United Kingdom ........................................................................................................................... 27

5

Brief Introduction

The aim of the brochure is to inform about Value Added Tax (VAT)

procedures for services connected with immovable property in all EU

Member States. Each state covers:

Information about particular Act on VAT with appropriate link (the act

in is the most cases available only in the respective national language).

Information about particular articles which deal:

with place of supply of services connected with immovable

property,

with the procedure for payment of VAT.

Short conclusions.

Reverse charge is a procedure used for Value Added Tax. It means that

goods or services are not owed by the supplier/provider, but they are owed by the buyer/recipient of the goods or services.

The Directive 2006/112/EC on Common System on Value Added Tax as

amended (http://eur-

lex.europa.eu/Notice.do?val=437183:cs&lang=en&list=561945:cs,561946

:cs,490744:cs,462097:cs,462096:cs,462095:cs,462094:cs,462093:cs,46

2092:cs,437183:cs,&pos=10&page=1&nbl=10&pgs=10&hwords where

also consolidated versions of the Directive can be found) has changed the

rules governing Value Added Tax significantly from January 2010. This is

particularly truth in case of supply of services. The supply of services is

defined as "...any transaction which does not constitute a supply of

goods…" (article 24 of the modified Directive 2006/112/EC).

The definition of the place of supply of services has been completely

changed (see modified articles 44 and 45 of the Directive 2006/112/EC).

Basic principles:

B2B – business-to-business: The place of supply of services to a

taxable person acting as such shall be the place where that person has

established his business. In such cases so called reverse charge is

compulsorily applied, which means that VAT shall be payable by any

taxable person, or non-taxable legal person identified for VAT purposes, to

whom the services referred to are supplied, if the services are supplied by

a taxable person not established within the territory of the same Member

State.

http://eur-lex.europa.eu/Notice.do?val=437183:cs&lang=en&list=561945:cs,561946:cs,490744:cs,462097:cs,462096:cs,462095:cs,462094:cs,462093:cs,462092:cs,437183:cs,&pos=10&page=1&nbl=10&pgs=10&hwords




6

B2C – business-to-customer: The place of supply of services to a non-

taxable person shall be the place where the supplier has established his

business.

These principles have a number of important exceptions (mentioned in

articles 46 – 59) where the above mentioned rules are not applied, the

most important examples of such exceptions are following:

Services connected with immovable property: taxation to VAT in the Member State where the immovable property is located;

Supply of passenger transport: VAT of the place where the transport takes place, proportionate to the distances covered;

Short-term hiring of means of transport: VAT of the place where the means of transport is actually put at the disposal of the customer;

Cultural, artistic, sporting, scientific, educational, entertainment and similar services, such as fairs and exhibitions: VAT of the place where

activities in respect of admission of a taxable person are physically carried out;

Restaurant and catering services: VAT of the place where those

services are physically carried out.

In such cases reverse charge may be applied if the supply of services is

performed between two VAT payers: it is always necessary to check this in

the legislation of the particular Member State.

Member States can be divided according to the procedures for VAT

payment:

1. Some of them apply reverse charge system also for services

connected with immovable property in case that both a supplier and a

recipient are VAT payers and the supplier does not have a company or

a fixed establishment in the country, where the service connected with

immovable property is provided.

EU Member States which apply reverse charge also for services

connected with immovable property

Austria France Poland

Belgium Germany* Portugal

Cyprus Hungary Romania

Czech Republic Italy Slovakia

Denmark Latvia Spain

Estonia Malta Sweden*

Finland* Netherlands United Kingdom

*with some exceptions

7

2. Some of them do not apply reverse charge system also for services

connected with immovable property. It means that the service supplier

must register for VAT purposes in this country and pay the VAT

himself.

EU Member States which do not apply reverse charge for services


Bulgaria* Ireland* Luxembourg

Greece Lithuania* Slovenia*

*with some exceptions

In case that the recipient of the services connected with immovable

property is a non-taxable person, the supplier must register for VAT

purposes in all EU Member States and pay the VAT himself, there.

Situation in Particular EU Member States (27)

Austria

VAT rates applied for services connected with immovable property:

Standard rate 20%

Act on VAT - Umsatzsteuergesetz 1994 (UStG) - as amended (in German)

http://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&

Gesetzesnummer=10004873

Services connected with immovable property:

§ 3a (9) of the Act on VAT



Reverse charge and services connected with immovable property:

§ 19 of the Act on VAT



(More information about reverse charge in Austria in English available here

http://english.bmf.gv.at/Tax/VATAssessmentRefund/SupplyinginAustria/Reversecharge/_

start.htm),more information about VAT in Austria in English can be found here

http://english.bmf.gv.at/Tax/VATAssessmentRefund/SupplyinginAustria/_start.htm).

Conclusions:

In Austria, reverse charge is generally applied for services with

http://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10004873






http://english.bmf.gv.at/Tax/VATAssessmentRefund/SupplyinginAustria/Reversecharge/_start.htm

http://english.bmf.gv.at/Tax/VATAssessmentRefund/SupplyinginAustria/Reversecharge/_start.htm

http://english.bmf.gv.at/Tax/VATAssessmentRefund/SupplyinginAustria/_start.htm

8

the place of supply in Austria if the recipient is a company or a

legal person VAT registered in Austria and if the service

provider (taxable person in his country of origin) does not have

a company or a fixed establishment in Austria (or with a fixed

establishment in Austria which is not intervening in the

concerned transaction). It means that reverse charge is applied

also for services connected with immovable property.

Belgium


Standard rate 21%, in some cases reduced rates 12% or 6%

Act on VAT – Code de la TVA - as amended (in French and in Flemish)

http://ccff02.minfin.fgov.be/KMWeb/document.do?method=view&id=53e3

0e9d-6466-4426-a57c-85b118905806#findHighlighted


Article 21 § 2.1° of the Act on VAT




Article 51 § 2 of the Act on VAT



Conclusions:

In Belgium, reverse charge is applied also for services

connected with immovable property if the recipient of the

service is a Belgian taxable person and if the service provider

(VAT payer in his country of origin) does not have a company

or a fixed establishment in Belgium.

Bulgaria


Standard rate 20%

http://ccff02.minfin.fgov.be/KMWeb/document.do?method=view&id=53e30e9d-6466-4426-a57c-85b118905806#findHighlighted






9

Act on VAT – ЗАКОН ЗА ДАНЪК ВЪРХУ ДОБАВЕНАТА СТОЙНОСТ - Value

Added Tax Act (VATA) - as amended

http://www.nap.bg/en/document?id=112 (in English)

http://lex.bg/laws/ldoc/2135533201 (in Bulgarian)


Art. 21 (4) 1 of the Value Added Tax Act (VATA)

http://www.nap.bg/en/document?id=112


Art. 95 (2) of the Value Added Tax Act – obligatory registration

Article 82 (2) of the Value Added Tax Act – exception for delivery of

services mounted or installed by or at the expense of the provider


Conclusions:

In Bulgaria, reverse charge is not applied for majority of

services connected with immovable property. It means that the

service supplier has to register for VAT and pay VAT in Bulgaria

himself.

The exception exists – for deliveries of services mounted or

installed by or at the expenses of the provider: in case the

recipient is a person, registered under this Act and the provider

is settled on the territory of another EU Member State; the

recipient is obliged to pay VAT.

Cyprus


Standard rate 17%, in some cases reduced rate can be 0%

Act on VAT – Ν. 95(I)/2000 ΤΟΥ ΦΟΡΟΥ ΠΡΟΣΤΙΘΕΜΕΝΗΣ ΑΞΙΑΣ - as

amended (in Greek)

http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/C65BA685536DC0CBC22572

3C002FECFB/$file/N95(I)2000.pdf?Openelement


Page 5 and following of the amendment of the Act on VAT

http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/FF80F898CE4C81D6C22577

06002E2D3A/$file/N13-1-1-2010AMEND-I4233_A1_P1.pdf?Openelement



http://lex.bg/laws/ldoc/2135533201



http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/C65BA685536DC0CBC225723C002FECFB/$file/N95(I)2000.pdf?Openelement

http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/C65BA685536DC0CBC225723C002FECFB/$file/N95(I)2000.pdf?Openelement

http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/FF80F898CE4C81D6C2257706002E2D3A/$file/N13-1-1-2010AMEND-I4233_A1_P1.pdf?Openelement


10

Page 5 and following of the amendment of the Act on VAT

http://www.mof.gov.cy/mof/VAT/VAT.nsf/All/FF80F898CE4C81D6C22577

06002E2D3A/$file/N13-1-1-2010AMEND-I4233_A1_P1.pdf?Openelement

Conclusions:

In Cyprus, reverse charge is applied also for services


service is a Cypriot taxable person and if the service provider


or a fixed establishment in Cyprus.

Czech Republic


Standard rate 20% (from 2013 21%), in some cases reduced rate 14%

(from 2013 15%)

Act on VAT – Zakon o dani z pridane hodnoty 235/2004 Sb. - as amended

(in Czech):

http://business.center.cz/business/pravo/zakony/dph/



http://business.center.cz/business/pravo/zakony/dph/cast1h2d2.aspx



http://business.center.cz/business/pravo/zakony/dph/cast1h4.aspx#par1

08

Conclusions:

In the Czech Republic, reverse charge is applied also for

services connected with immovable property if the recipient of

the service is a Czech taxable person (or a person identified for

VAT) and if the service provider (VAT payer in his country of

origin) does not have a company or a fixed establishment in

the Czech Republic.



http://business.center.cz/business/pravo/zakony/dph/

http://business.center.cz/business/pravo/zakony/dph/cast1h2d2.aspx



11

Denmark


Standard rate 25%

Act on VAT - Lov om merværdiafgift (momsloven) - as amended (in

Danish)

https://www.retsinformation.dk/forms/r0710.aspx?id=135905





§ 46 3) of the Act on VAT


(More information in English

http://www.skat.dk/getFile.aspx?Id=65704)

Conclusions:

In Denmark, reverse charge is applied also for services


service is a Danish taxable person and if the service provider


or a fixed establishment in Denmark.

Estonia


Standard rate 20%, in some cases reduced rate 9%

Act on VAT – Käibemaksuseadus - as amended

http://www.legaltext.ee/et/andmebaas/tekst.asp?loc=text&dok=X70060K

5&keel=en&pg=1&ptyyp=RT&tyyp=X&query=k%E4ibemaksu (in English)


5&pg=1&tyyp=X&query=k%E4ibemaksu&ptyyp=RT&keel=et (in Estonian)


§ 10 (2) 1) of the act on VAT


5&keel=en&pg=1&ptyyp=RT&tyyp=X&query=k%E4ibemaksu




http://www.skat.dk/getFile.aspx?Id=65704

http://www.legaltext.ee/et/andmebaas/tekst.asp?loc=text&dok=X70060K5&keel=en&pg=1&ptyyp=RT&tyyp=X&query=k%E4ibemaksu


http://www.legaltext.ee/et/andmebaas/tekst.asp?loc=text&dok=X70060K5&pg=1&tyyp=X&query=k%E4ibemaksu&ptyyp=RT&keel=et

http://www.legaltext.ee/et/andmebaas/tekst.asp?loc=text&dok=X70060K5&pg=1&tyyp=X&query=k%E4ibemaksu&ptyyp=RT&keel=et



12


§ 411 (1) and (2) 1) of the act on VAT


5&keel=en&pg=1&ptyyp=RT&tyyp=X&query=k%E4ibemaksu

(More information about VAT in Estonia in English

http://www.emta.ee/index.php?id=1839)

Conclusions:

In Estonia, reverse charge is generally applied for services with

the place of supply in Estonia if the recipient is a company or a

legal person VAT registered in Estonia and if the service


a company or a fixed establishment in Estonia. It means that

reverse charge is applied also for services connected with

immovable property.

Finland


Standard rate 23%

Act on VAT - Arvonlisäverolaki 30.12.1993/1501 - as amended (in English

Value Added Tax Act)

http://www.finlex.fi/en/laki/kaannokset/1993/en19931501.pdf (in English,

unfortunately, does not cover the latest amendments)

http://www.finlex.fi/fi/laki/ajantasa/1993/19931501 (in Finish)


Article 65 of the Value added Tax Act

http://www.finlex.fi/en/laki/kaannokset/1993/en19931501.pdf


See part - 6 Foreign business selling or buying construction-related

services (as of 1 April 2011) of the VAT registration of foreigners in

Finland

http://www.vero.fi/en-

US/Precise_information/International_tax_situations/VAT_registration_of_

foreigners_in_Finlan(14701)#Foreignbusinesssellingorbuyingconstruction-

relatedservices



http://www.emta.ee/index.php?id=1839


http://www.finlex.fi/fi/laki/ajantasa/1993/19931501


http://www.vero.fi/en-US/Precise_information/International_tax_situations/VAT_registration_of_foreigners_in_Finlan(14701)#Foreignbusinesssellingorbuyingconstruction-relatedservices




13

See also Reverse charge in value added taxation in the construction sector

from 1 April 2011

http://www.vero.fi/en-

US/Precise_information/Value_added_tax/Reverse_charge_in_value_adde

d_taxation_i(14870)

Conclusions:

In Finland, reverse charge is applied for a great number of

services connected with immovable property if the recipient is

a business selling building services on an ongoing basis in

Finland if the service provider (VAT payer in his country of

origin) does not have a company or a fixed establishment in

Finland. Various exceptions exist, when the reverse charge is

not applied – namely:

Installation of plant used for the production.

Architectural services, planning and design work, other

engineering and technical services.

Outdoor cleaning services (including roads, driveways,

parks, airports).

Building maintenance, etc.

France


Standard rate 19,6%, in some cases reduced rates 7%, 5,5% or 2,1%

Act on VAT - Code général des impôts – as amended (in French)

http://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT0000060

69577


Article 259A 2°of the Act on VAT

http://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000

021644615&cidTexte=LEGITEXT000006069577&dateTexte=20120302&fa

stPos=1&fastReqId=1056444996&oldAction=rechCodeArticle

http://www.vero.fi/en-US/Precise_information/Value_added_tax/Reverse_charge_in_value_added_taxation_i(14870)





http://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000021644615&cidTexte=LEGITEXT000006069577&dateTexte=20120302&fastPos=1&fastReqId=1056444996&oldAction=rechCodeArticle



14


Article 283 1 of the Act on VAT

http://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000

025074010&cidTexte=LEGITEXT000006069577&dateTexte=20120302&ol

dAction=rechCodeArticle

Conclusions:

In France, reverse charge is generally applied for services with

the place of supply in France if the recipient is a company or a

legal person VAT registered in France and if the service


a company or a fixed establishment in France. It means that

reverse charge is applied also for services connected with

immovable property.

Germany


Standard rate 19%

Act on VAT – Umsatzsteuergesetz – UStG - as amended (in German)

http://www.gesetze-im-internet.de/ustg_1980/


§ 3a (3) 1 of the Act on VAT

http://www.gesetze-im-internet.de/ustg_1980/__3a.html


§ 13b (2) 4 of the Act on VAT

http://www.gesetze-im-internet.de/ustg_1980/__13b.html

Conclusions:

In Germany, reverse charge is applied for majority of services


service is a company or a legal person VAT registered in

Germany and if the service provider (VAT payer in his country

of origin) does not have a company or a fixed establishment in

Germany. Two exceptions exist – design and monitoring

services, when reverse charge is not applied.

http://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000025074010&cidTexte=LEGITEXT000006069577&dateTexte=20120302&oldAction=rechCodeArticle



http://www.gesetze-im-internet.de/ustg_1980/

http://www.gesetze-im-internet.de/ustg_1980/__3a.html

http://www.gesetze-im-internet.de/ustg_1980/__13b.html

15

Greece


Standard rate 23%

Act on VAT - NOMOΣ ΥΠ’ ΑΡΙΘ 3763 Ενσωμάτωση Οδηγιών 2006/98/ ΕΚ,

2008/8/ΕΚκαι 2007/ 74/EK, διατάξεων των Οδηγιών 2006/112/ΕΚ και

2006/ 69/ΕΚ, διατάξεις φορολογίας εισοδήματος, κεφα− λαίου, ΦΠΑ και

λοιπών φορολογιών και λοιπές διατάξεις. (In English Law number 3763 of

2009 - Incorporation of Directives 2006/98/EC, 2008/8/EC and

2007/74/EC, clauses of Directives 2006/12/EC and 2006/69/EC, clauses of

income tax policy, of capital tax, of VAT and other taxation and other

clauses) - as amended (in Greek)

http://www.minfin.gr/content-

api/f/binaryChannel/minfin/datastore/aa/44/0b/aa440b9b949c452a779daf

44cdd62cd87f6d309b/application/pdf/3763-2009-80-x_2009_05_27.pdf


Article 22 paragraph 4 of the above mentioned Law (3763/2009

incorporating EU directives)

http://www.minfin.gr/content-

api/f/binaryChannel/minfin/datastore/aa/44/0b/aa440b9b949c452a779daf

44cdd62cd87f6d309b/application/pdf/3763-2009-80-x_2009_05_27.pdf


Reverse charge is not applied for services connected with immovable

property in Greece. VAT is paid in Greece.

Conclusions:

In Greece, the VAT for services connected with immovable

property is usually paid through a representative - agent in

Greece if the service provider is a business settled in another

EU Member State.

Hungary


Standard rate 27%

Act on VAT - 2007. évi CXXVII. törvény, az általános forgalmi adóról - as amended (in Hungarian)

http://net.jogtar.hu/jr/gen/hjegy_doc.cgi?docid=A0700127.TV


http://www.minfin.gr/content-api/f/binaryChannel/minfin/datastore/aa/44/0b/aa440b9b949c452a779daf44cdd62cd87f6d309b/application/pdf/3763-2009-80-x_2009_05_27.pdf







16






Conclusions:

In Hungary, reverse charge is applied also for services


service is a Hungarian taxable person and if the service

provider (VAT payer in his country of origin) does not have a

company or a fixed establishment in Hungary.

Ireland


Standard rate 23%, in some cases reduced rate 13,5%

Act on VAT – VAT Consolidation Act 2010 - as amended

http://www.revenue.ie/en/practitioner/law/notes-for-guidance/vat/vat-

consolidation-act2010.pdf


Section 34 (c) of the Act on VAT




Section 12 (2) of the Act on VAT – covers only a limited part of services


Section 16 (3) of the Act on VAT – in case that a “principal contractor”

exists, this principal contractor is responsible for any VAT due.



(Additional information in English

VAT treatment of services connected with immovable property

http://www.revenue.ie/en/tax/vat/leaflets/vat-on-servcies-connected-with-immovable-

property.html

Foreign suppliers doing business in Ireland

http://www.revenue.ie/en/tax/vat/leaflets/foreign-suppliers.html



http://www.revenue.ie/en/practitioner/law/notes-for-guidance/vat/vat-consolidation-act2010.pdf






http://www.revenue.ie/en/tax/vat/leaflets/vat-on-servcies-connected-with-immovable-property.html

http://www.revenue.ie/en/tax/vat/leaflets/vat-on-servcies-connected-with-immovable-property.html

http://www.revenue.ie/en/tax/vat/leaflets/foreign-suppliers.html

17

VAT on property guide http://www.revenue.ie/en/tax/vat/leaflets/property-

guide/index.html)

Conclusions:

In Ireland, reverse charge is not applied for majority services

connected with immovable property. It means that the service

supplier has to register for VAT and pay VAT in Ireland himself.

These concern namely following services:

Construction and related services.

Hotel accommodation.

In case that a principal contractor for the services mentioned

above exists, this principal contractor is responsible for any

VAT due (including of VAT dues of his subcontractors).

For services others than named above, the reverse charge is

applied if the recipient is a company or a legal person VAT

registered in Ireland and if the service provider (VAT payer in

his country of origin) does not have a company or a fixed

establishment in Ireland.

Italy


Standard rate 21%, in some cases reduced rate 10% or 4%

Act on VAT - Decreto del Presidente della Repubblica del 26 ottobre 1972

n. 633 - as amended (in Italian)

http://def.finanze.it/DocTribFrontend/decodeurn?urn=urn:doctrib::DPR:1

972-10-26;633


Article 7 C 1. a) (in Italian Articolo 7 quater 1. a)) of the Act on VAT:


972-10-26;633


Article 17 of the Act on VAT:


972-10-26;633

http://www.revenue.ie/en/tax/vat/leaflets/property-guide/index.html

http://www.revenue.ie/en/tax/vat/leaflets/property-guide/index.html

http://def.finanze.it/DocTribFrontend/decodeurn?urn=urn:doctrib::DPR:1972-10-26;633


http://def.finanze.it/DocTribFrontend/getArticoloDetail.do?id=%7bF7A128ED-70D4-497D-B670-3133EEDB751A%7d&FROM_SEARCH=true&codiceOrdinamento=200000700000400&numeroArticolo=Articolo%207%20quater&idAttoNormativo=%7b75A4827C-3766-4ECC-9C45-00C8D6CDC552%7d





18

Conclusions:

In Italy, reverse charge is generally applied for services with

the place of supply in Italy. It means that reverse charge is

applied also for services connected with immovable property if

the recipient is a company or a legal person VAT registered in

Italy and if the service provider(taxable person in his country


Italy.

Latvia


Standard rate 22%

Act on VAT - 09.03.1995 Par pievienotās vērtības nodokli - as amended

http://www.google.cz/url?sa=t&rct=j&q=&source=web&cd=2&ved=0CGo

QFjAB&url=http%3A%2F%2Fwww.vid.gov.lv%2Fdokumenti%2Ftiesibu_ak

ti%2Flikumi%2F2011%2Fvalue_added_tax.doc&ei=R-

uwT83eHs3mtQapmumjBA&usg=AFQjCNFG1HPPAtm_5-

2nPWof6duxDv0VJA (in English, does not cover amendments after 25

March 2010)

http://www.likumi.lv/doc.php?id=34443 (in Latvian)


Section 41 (8) of the Act on VAT

http://www.likumi.lv/doc.php?id=34443


Section 12 (117) of the Act on VAT


Conclusions:

In Latvia, reverse charge is applied also for services connected

with immovable property if the recipient of the service is a

taxable person and if the service provider (VAT payer in his

country of origin) does not have a company or a fixed

establishment in the Latvia.

http://www.google.cz/url?sa=t&rct=j&q=&source=web&cd=2&ved=0CGoQFjAB&url=http%3A%2F%2Fwww.vid.gov.lv%2Fdokumenti%2Ftiesibu_akti%2Flikumi%2F2011%2Fvalue_added_tax.doc&ei=R-uwT83eHs3mtQapmumjBA&usg=AFQjCNFG1HPPAtm_5-2nPWof6duxDv0VJA








19

Lithuania


Standard rate 21%

Act on VAT – Valstybés žinios - as amended (in Lithuanian)

http://www.infolex.lt/ta/66285#Xb166d84449314ab6b1dccf019da03c70


Article 13 (in Lithuanian straipsnis 13), paragraph 4 of the Act on VAT



Article 71 of the Act on VAT


Conclusions:

In Lithuania, reverse charge is not applied for majority of

services connected with immovable property. It means that the

provider - foreign taxable person - must be identified

(registered) for VAT purposes in Lithuania and calculate and

pay VAT into the Lithuanian budget.

Exception from this rule are services of letting and leasing

immovable properties that are not subject to VAT.

Luxembourg



Act on VAT – Loi du 12 fevrier 1979 concernant la taxe sur la valeur

ajoutee - as amended (in French)

http://www.aed.public.lu/tva/loi/Loi_TVA_2012.pdf


Article 17/2/2° of the Act on VAT



Article 17/2/2° of the Act on VAT - also means that reverse charge is not

applied for services connected with immovable property






20

Article 26/2 of the Act on VAT - states that service provider who is obliged

to pay VAT in Luxembourg must register, there


Conclusions:

In Luxembourg, reverse charge is not applied for services

connected with immovable property. It means that the service

provider – a foreign taxable person - must be identified

(registered) for VAT purposes in Luxembourg and therefore

calculate and collect VAT for the Luxembourgish budget.

Malta


Standard rate 18%

Act on VAT – Chapter 406 Value Added Tax Act - as amended

http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&ite

mid=8872


Third schedule (Article 7), Part Two 4 of the of the Value Added Tax Act


mid=8872


Article 20, paragraph (2) (b) of the of the Value Added Tax Act


mid=8872

(Rules concerning VAT for services can be found in a short “Guide on the New Place of

Supply of Services Rules” published by the VAT Department of the Ministry of Finance of

Malta http://vat.gov.mt/docs/Place%20of%20Supply%20of%20Services_EN_vers01.pdf)

Conclusions:

In Malta, reverse charge is applied also for services connected

with immovable property if the recipient of the service is a

Maltese taxable person (or a non-taxable legal person

identified for VAT purposes) and if the service provider (VAT

payer in his country of origin) does not have a company or a

fixed establishment in Malta.


http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8872






http://vat.gov.mt/docs/Place%20of%20Supply%20of%20Services_EN_vers01.pdf

21

Netherlands



Act on VAT – Wet op de omzetbelasting 1968 - as amended (in Dutch)

http://wetten.overheid.nl/BWBR0002629/geldigheidsdatum_06-06-2012


Chapter 2, section 1 b, paragraph 2, article 6 b of the Act on VAT

http://wetten.overheid.nl/BWBR0002629/HoofdstukII/Afdeling1b/Paragra

af2/Artikel6b/geldigheidsdatum_06-06-2012


Chapter 2, section 4, article 12. 2 of the Act on VAT

http://wetten.overheid.nl/BWBR0002629/HoofdstukII/Afdeling4/Artikel12/

geldigheidsdatum_06-06-2012

(Additional information in English:

The VAT owed is levied from the buyer of the service

http://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/business/

vat/vat_in_the_netherlands/supplying_services/the_vat_owed_is_levied_from_the_buyer

_of_the_service)

Conclusions:

In the Netherlands, reverse charge is applied also for services


service is a Dutch taxable person and if the service provider


or a fixed establishment in the Netherlands.

Poland


Standard rate 23%, in some cases reduced rates 8%, 5% or 0%

Act on VAT – Ustawa o podatku od towarów i usług - as amended (in

Polish)

http://www.vat.pl/przepisy/

http://www.przepisy.gofin.pl/przepisy,3,32,32,670,55524,20120101,miejs

ce-swiadczenia-przy-swiadczeniu-uslug.html (with 20 executive decrees)

http://wetten.overheid.nl/BWBR0002629/geldigheidsdatum_06-06-2012

http://wetten.overheid.nl/BWBR0002629/HoofdstukII/Afdeling1b/Paragraaf2/Artikel6b/geldigheidsdatum_06-06-2012

http://wetten.overheid.nl/BWBR0002629/HoofdstukII/Afdeling1b/Paragraaf2/Artikel6b/geldigheidsdatum_06-06-2012

http://wetten.overheid.nl/BWBR0002629/HoofdstukII/Afdeling4/Artikel12/geldigheidsdatum_06-06-2012

http://wetten.overheid.nl/BWBR0002629/HoofdstukII/Afdeling4/Artikel12/geldigheidsdatum_06-06-2012

http://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/business/vat/vat_in_the_netherlands/supplying_services/the_vat_owed_is_levied_from_the_buyer_of_the_service



http://www.vat.pl/przepisy/

http://www.przepisy.gofin.pl/przepisy,3,32,32,670,55524,20120101,miejsce-swiadczenia-przy-swiadczeniu-uslug.html

http://www.przepisy.gofin.pl/przepisy,3,32,32,670,55524,20120101,miejsce-swiadczenia-przy-swiadczeniu-uslug.html

22


Article 28e of the Act on VAT

http://www.vat.pl/att/przepisy/VAT_2012.pdf


Article 28e of the Act on VAT and article 100, paragraph 10 of the Act on

VAT


Conclusions:

In Poland, reverse charge is applied also for services connected

with immovable property if both the recipient and the provider

of the service are VAT payers and if the service provider does

not have a company or a fixed establishment in Poland. If the

service provider is registered in Poland for VAT purpose, the

reverse charge rule does not apply.

Portugal


Standard rate 23%, in some cases reduced rate 6% (in Madeira Island –

standard rate 22%, reduced rate 5%, in Azores – standard rate 16%,

reduced rate 4%)

Act on VAT - Código sobre o Valor Acrescentado (CIVA) - as amended (in

Portuguese)

http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributari

os/civa_rep/index_iva.htm


Article 6, paragraph 8, subparagraph a) of the Act on VAT


os/civa_rep/iva6.htm


Article 2, paragraph 1, subparagraph a) and g) of the Act on VAT


os/civa_rep/iva2.htm

Conclusions:

In Portugal, reverse charge is applied also for services



http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/civa_rep/index_iva.htm

http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/civa_rep/index_iva.htm

http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/civa_rep/iva6.htm




23


service is a Portuguese taxable person and if the service


company or a fixed establishment in Portugal.

Romania



Act on VAT – Codul Fiscal cu normele metodologice de aplicare - as

amended (in Romanian)

http://static.anaf.ro/static/10/Anaf/Cod_fiscal_norme_2012.htm


Article 133, paragraph (4) a) of the Codul Fiscal

http://static.anaf.ro/static/10/Anaf/Cod_fiscal_norme_2012.htm#_Toc304

299914


Article 150, paragraph (6) of the Codul Fiscal


299945

Conclusions:

In Romania, reverse charge is applied also for services


service is a Romanian taxable person and if the service


company or a fixed establishment in Romania.

Slovakia


Standard rate 20%

Act on VAT - Zakon o dani z pridanej hodnoty 222/2004 Z. Z. - as

amended (in Slovak)

http://www.porada.sk/t7176-zakon-o-dani-z-pridanej-hodnoty-od-01-01-

2012-a.html#15

http://static.anaf.ro/static/10/Anaf/Cod_fiscal_norme_2012.htm





http://www.porada.sk/t7176-zakon-o-dani-z-pridanej-hodnoty-od-01-01-2012-a.html#15


24


§ 16 (1) of the Act on VAT


2012-a.html#15


§ 69 (2) of the Act on VAT


2012-a.html#15

Conclusions:

In Slovakia, reverse charge is applied also for services


service is a taxable person which has a set, a place of

business, an establishment or a residence in Slovakia. In

addition, the service provider (VAT payer in his country of

origin) must not have a company or a fixed establishment in

Slovakia.

Slovenia


Standard rate 20%, in some cases reduced rate 8,5%

Act on VAT - Zakon o davku na dodano vrednost published in the Official

Gazette 13/2011 - as amended

http://www.durs.gov.si/fileadmin/durs.gov.si/pageuploads/Obrazci_ANG/

VALUE_ADDED_TAX_ACTZDDV-1-_UNOFFICIALTRANSLATION.pdf (in

English)

http://www.uradni-list.si/1/objava.jsp?urlid=201113&stevilka=554 (in

Slovenia)


Article 27 of the Act on VAT

http://www.uradni-list.si/1/objava.jsp?urlid=201113&stevilka=554


Articles 78 and 79 of the Act on VAT deal with the obligation to register for

VAT in Slovenia also for services connected with immovable properties.

Article 76a of the Act on VAT - exceptions for which it is not necessary to





http://www.durs.gov.si/fileadmin/durs.gov.si/pageuploads/Obrazci_ANG/VALUE_ADDED_TAX_ACTZDDV-1-_UNOFFICIALTRANSLATION.pdf

http://www.durs.gov.si/fileadmin/durs.gov.si/pageuploads/Obrazci_ANG/VALUE_ADDED_TAX_ACTZDDV-1-_UNOFFICIALTRANSLATION.pdf



25

register for VAT for services connected with immovable property.


Conclusions:

A foreign supplier providing services connected to immovable

property in Slovenia is in many cases obliged to register for

VAT purposes in Slovenia and consequently calculate and pay

Slovene VAT. Reverse charge system for services connected to

immovable property is therefore in these cases not applicable.

Exceptions:

a) Construction work including repair, cleaning, maintenance, alteration

and demolition services in relation to immovable property;

b) Supply of staff involved in the performance of activities referred to in

the preceding point;

c) Supply of immovable property referred to in points 7 and 8 of Article

44 of this Act (on VAT) provided that the supplier has opted for taxation

in accordance with Article 45 of this Act;

d) Supply of waste, residues and used material and services referred to in

Annex IIIa to this Act.

In above mentioned cases, reverse charge is applied also for

services connected with immovable property if the recipient of

the service is a taxable person which has a set, a place of

business, an establishment or a residence in Slovenia; the

service provider (VAT payer in his country of origin) must not

have a company or a fixed establishment in Slovenia.

Spain



Act on VAT – Ley 37/1992, de 28 de diciembre, del Impuesto sobre el

Valor Añadido - as amended (in Spanish)

http://noticias.juridicas.com/base_datos/Fiscal/l37-1992.html







26




Conclusions:

In Spain, reverse charge is applied also for services connected with immovable property if the recipient of the service is a Spanish taxable person and if the service provider (VAT payer in his country of origin) does not have a company or a fixed establishment in Spain.

Sweden


Standard rate 25%

Act on VAT - Mervärdesskattelag (1994:200) - as amended (in Swedish)

http://www.notisum.se/rnp/sls/lag/19940200.htm


Chapter 5 (each Chapter is numbered by articles from the beginning),

article 8 of the of the Act on VAT



Chapter “Reverse charge of VAT” of the “VAT Brochure” issued by the

Swedish Tax Agency (SKV 552B Edition 11):

http://www.skatteverket.se/download/18.71004e4c133e23bf6db8000948

81/552B11.pdf

Conclusions:

In Sweden, reverse charge is applied for majority of

constructions services if the recipient of the service is a

company or a legal person VAT registered in Sweden (which

deals with construction services not only temporarily) and if

the service provider (VAT payer in his country of origin) does

not have a company or a fixed establishment in Sweden.

Various exceptions exist – namely:

Caretaking including minor repairs, planting/maintenance of

green areas.




http://www.skatteverket.se/download/18.71004e4c133e23bf6db800094881/552B11.pdf

http://www.skatteverket.se/download/18.71004e4c133e23bf6db800094881/552B11.pdf

27

Architectural activities, construction, consulting and project

management.

Installation and assembly of industrial equipment, etc.

United Kingdom



Act on VAT – Value Added Tax Act 1994 - as amended

http://www.legislation.gov.uk/ukpga/1994/23/contents


Section 6 (Services relating to land) of the HMRC (Her Majesty Revenue

and Customs) Reference Notice 741A “Place of supply of services”:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebAp

p.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PRO

D1_029955&propertyType=document#P236_31282

Reverse charge and immovable property:

Section 18 (Reverse charge), paragraph 18.11 of the HMRC (Her Majesty

Revenue and Customs) Reference Notice 741A “Place of supply of

services”:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebAp

p.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PRO

D1_029955&propertyType=document#P1027_129359

Conclusions:

In the United Kingdom, reverse charge is applied for majority

of services connected with immovable property if the recipient

of the service is a company or a legal person which is UK VAT

registered and if the service provider (VAT payer in his country


the UK.

co-funded by the

http://www.legislation.gov.uk/ukpga/1994/23/contents

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PROD1_029955&propertyType=document#P236_31282






Documents

Procedures for Value Added Tax for Services Connected with