Situation:
A newly established Romanian company intends to provide construction services (interior renovations) in Belgium, to taxable persons registered for VAT purposes in Belgium. The sole shareholder, who is also the administrator, will personally perform the renovation works.
Applicable legal framework:
According to Article 278 (4)(a) of the Romanian Fiscal Code, for services related to immovable property (including renovation, maintenance, repair, and installation works), the place of supply is where the property is located – in this case, Belgium.
Implementation rules (point 16) specify that such services are considered directly connected to the property and therefore fall under the exceptions to the general place-of-supply rule.
Tax implications:
- Construction services provided in Belgium are NOT declared in the recapitulative statement (Form 390).
- The invoice issued by the Romanian company must not include Romanian VAT, since the place of taxation is Belgium.
- The company must check Belgian tax rules:
- If Belgian law allows the reverse charge mechanism, the VAT will be paid by the Belgian customer.
- If not, the Romanian company must register for VAT purposes in Belgium and pay VAT locally.
Conclusion:
For renovation services provided to legal entities in Belgium:
- the place of supply is Belgium,
- no declaration in Form 390 is required,
- invoices are issued without Romanian VAT,
VAT registration in Belgium is mandatory if reverse charge is not applicable.