# VAT reverse charge: when and how to use it

Updated 24 September 2026. Source: https://goldmary.eu/en/blog/btw-verlegd

**Short answer:** With reverse charge (btw verlegd) the supplier charges no VAT, and the customer reports it in their own VAT return. This mainly happens with services between businesses in different EU countries, with purchases from outside the EU and with subcontracting in sectors such as construction. As the buyer you usually deduct the same VAT in the same return, so you pay nothing net.

## What does VAT reverse charge mean?

Normally you put VAT on your invoice and pay it to the Belastingdienst. With reverse charge (btw verlegd) that duty moves to your client. You invoice without VAT, and your client calculates the VAT and reports it. If the client can deduct the VAT, they deduct it in the same return. No money changes hands net, but it must still appear in the return.

| Situation | Who reports the VAT | Section |
| --- | --- | --- |
| You supply a service to a business in another EU country | Your client, in their own country | 3b |
| You buy a service from a business in another EU country | You | 4b, deduction in 5b |
| You buy a service from a business outside the EU | You | 4a, deduction in 5b |
| Subcontracting in the Netherlands, for example in construction | The main contractor | 2a, deduction in 5b |

## How do you invoice a client in another EU country?

If you supply a service to a business in another EU country, in most cases you reverse charge the VAT. A different rule applies to some services. If in doubt, check the page of the Belastingdienst on services to clients in other EU countries.

Put the following on the invoice:

- no VAT amount;
- your own [VAT identification number](https://goldmary.eu/en/blog/btw-nummer-btw-id);
- the VAT identification number of your client;
- the words 'btw verlegd'. In English 'VAT reverse-charge' is allowed.

Always check the VAT number of your client in VIES, the checking site of the European Commission. If the number is invalid, you cannot simply reverse charge. The other [invoice requirements](https://goldmary.eu/en/blog/factuur-eisen) still apply.

## What do you enter in section 3b and the ICP statement?

Enter the turnover without VAT in your VAT return under section 3b. You also file an EU sales list (opgaaf intracommunautaire prestaties, ICP). It lists each client with their VAT number and the amount. The total of the ICP statement must match section 3b exactly. For services, the period in which you supplied the service counts, not the invoice date. If you supplied nothing to EU clients in a period, you file no statement.

## How do you report reverse charged VAT on your own purchases?

Many freelancers buy software, hosting or advertising from foreign businesses. If the invoice says 'VAT reverse-charge' or 'btw verlegd', you must report Dutch VAT yourself.

- If the supplier is in another EU country, enter the amount in **section 4b**.
- If the supplier is outside the EU, for example in the United States, enter it in **section 4a**.
- You calculate VAT on it yourself, usually 21%.
- If you use the service for turnover on which you charge VAT, you deduct the same VAT in **section 5b**.

## Example: hosting from an Irish business

Fatima builds websites. She rents servers from a business in Ireland for €250.00 a month. The invoice carries no VAT and states 'VAT reverse-charge' and her VAT number. In the third quarter she pays three times, €750.00 in total. Her own turnover is €12,000.00 at 21%.

| Section | Turnover | VAT |
| --- | --- | --- |
| 1a | €12,000.00 | €2,520.00 |
| 4b | €750.00 | €157.50 |
| 5a (total owed) |  | €2,677.50 |
| 5b (input VAT) |  | €157.50 |
| Amount to pay |  | **€2,520.00** |

_Example figures. The reverse charged VAT enters through 4b and leaves through 5b._

So Fatima pays the same VAT as without the hosting. If she forgets 4b and 5b, her return is wrong, even though the difference is nil. Had the business been in the United States, 4b would have been section 4a.

## When do you reverse charge VAT inside the Netherlands?

Reverse charge also exists inside the Netherlands. The best known case is subcontracting and hiring out staff in construction, shipbuilding, cleaning and gardening. If you work as a subcontractor for a main contractor, you shift the VAT to them. They report it in section 2a and deduct it in 5b.

On your invoice put 'btw verlegd' and the VAT identification number of your client. There are exceptions. If you did more than half the work in your own workshop, you may not reverse charge and you charge VAT as normal.

> **Note.** If you are unsure whether a job falls under the reverse charge scheme (verleggingsregeling), check the page of the Belastingdienst on subcontracting. If you reverse charge wrongly, you may still have to pay the VAT.

To convert an amount with or without VAT, use the [VAT calculator](https://goldmary.eu/en/calculators/btw-berekenen). How the whole return works is explained in [filing a VAT return as a freelancer](https://goldmary.eu/en/blog/btw-aangifte-doen-zzp).

## Questions

### Do I pay extra VAT if VAT is reverse charged to me?

Usually not. You report the VAT in 4a, 4b or 2a and deduct it again in 5b. That only works if you use the purchase for turnover on which you charge VAT.

### Must I put 'btw verlegd' on my invoice?

Yes, if you reverse charge the VAT. Also add your own VAT identification number (btw-id) and that of your client. No VAT amount goes on it.

### May I reverse charge VAT to a private person in another EU country?

No. You can only reverse charge to a business with a valid VAT number. Check that number in VIES.

### What is the difference between section 4a and 4b?

4a is for purchases from suppliers outside the EU, 4b for purchases from suppliers in other EU countries.

### Must I file an ICP statement if I buy services in the EU?

No. The ICP statement covers what you supply to businesses in other EU countries, so section 3b.

## Sources

- [Belastingdienst: How reverse charging VAT works (in Dutch)](https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/btw_berekenen_aan_uw_klanten/waarover_btw_berekenen/verleggingsregeling/hoe_werkt_btw_verleggen)
- [Belastingdienst: Extra invoice requirements for services (in Dutch)](https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/zakendoen_met_het_buitenland/goederen_en_diensten_naar_andere_eu_landen/factureren/extra_factuureisen_bij_diensten)
- [Belastingdienst: ICP statement (in Dutch)](https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/zakendoen_met_het_buitenland/goederen_en_diensten_naar_andere_eu_landen/opgaaf_icp/opgaaf_icp)
- [Belastingdienst: Filing a return for services from countries outside the EU (in Dutch)](https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/zakendoen_met_het_buitenland/zakendoen_buiten_de_eu/aangifte_doen_als_u_zakendoet_buiten_de_eu/aangifte_doen_als_u_diensten_afneemt_van_leveranciers_uit_niet_eu_landen)
- [Belastingdienst: Reverse charge for subcontracting and hiring out staff (in Dutch)](https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/btw_berekenen_aan_uw_klanten/waarover_btw_berekenen/verleggingsregeling/wanneer_btw_verleggen/bij_onderaanneming_en_personeel_uitlenen/verlegging_bij_onderaanneming_en_personeel_uitlenen)

_General information, not tax advice. Amounts are for 2026._