Complete guide to the domestic reverse charge. Learn which services qualify, how to invoice correctly, and how to account for TVA in Boxes 1 and 4.
Mandatory
If Qualified
20%
Taux normal
BTP
Often Used
Zéro TVA
On Facture
Reverse charge means the customer (contractor) becomes liable for TVA instead of the supplier (sub-contractor). The supplier invoices without TVA; the customer accounts for the TVA to DGFIP.
Factures du fournisseur:
Net: €1,000 + TVA: €200 = €1,200
Supplier pays €200 to DGFIP
Client reclaims €200
Factures du fournisseur:
Net: €1,000 (no TVA shown)
Client accounts for €200 TVA
Client pays DGFIP directly
Résultat final : Same amount of TVA is paid to DGFIP, but the person responsible changes.
L'autoliquidation s'applique aux services de construction tels que définis dans la Notice TVA 706/14. Ce sont les services fournis dans le cadre d'une activité de construction.
Si le client n'est pas un entrepreneur ou sous-traitant (par exemple, un propriétaire commandant des travaux sur sa propriété), l'autoliquidation ne s'applique PAS. La TVA normale s'applique à la place.
Services provided through intermediaries (labour-only agencies) may not qualify. Check if the intermediary is acting as principal or agent.
Materials or goods supplied without labour do NOT qualify. Reverse charge only applies when labour or services are provided.
Services outside construction scope (accountancy, legal advice, marketing) do NOT qualify, even if provided to construction companies.
When reverse charge applies, your invoice must clearly show that TVA is due from the customer under reverse charge rules.
Service Description
Clearly describe the construction service provided
Net Montant Only
Facture shows net amount - TVA is NOT shown on the invoice
Autoliquidation Statement
Include a statement such:
"Reverse charge – TVA will be accounted for by the customer under the domestic reverse charge procedure"
Vos détails
Your TVA number (if registered) and company name
Client's Details
Client name, address, and TVA number (if registered)
Facture Date and Number
Normal invoice requirements apply
Important: The invoice shows €0 TVA. The customer must still be told the TVA rate (20%) applies, so they know how much TVA to account for.
As the customer (contractor), you must account for TVA in specific boxes on your TVA return.
When you receive an invoice under reverse charge, you must calculate the TVA due (at 20%) and account for it on your TVA return in both Box 1 (output TVA) and Box 4 (input TVA reclaim).
Include the TVA amount calculated on the reverse charge invoice (invoice amount × 20% ÷ 120%).
Exemple:
Facture: €1,000 net
TVA: €200 (20%)
Box 1: Add €200
Claim the same TVA amount as input tax (cost relief for your business).
Exemple:
TVA from reverse charge: €200
Box 4: Claim €200
Net Effect: Box 1 and Box 4 both increase by the same amount, netting to zero impact on your TVA liability. The process ensures DGFIP collects TVA even though the supplier didn't charge it.
Scénario: You hire a builder for site management. Facture received: €2,400 (no TVA shown, marked as reverse charge).
Calculation
Facture amount: €2,400
TVA rate: 20%
TVA due: €400
TVA Return
Box 1 (Output): +€400
Box 4 (Input): +€400
Net: €0
Scénario: Sub-contractor provides three invoices: €5,000 reverse charge, €1,200 normal TVA (to homeowner), €800 normal TVA (plant hire).
Facture 1
Montant: €5,000
Type: Reverse charge
TVA: €833
Facture 2
Montant: €1,200
Type : Normal TVA
TVA: €240
Facture 3
Montant: €800
Type : Normal TVA
TVA: €160
TVA Return: Box 1 (Output): €833 | Box 4 (Input): €833 + €240 + €160 = €1,233 | Net: -€400 (claim)
Scénario: You have an invoice marked "reverse charge" but only the gross amount (€3,000). You need to calculate the TVA portion.
Utilisation de notre calculatrice:
Enter: €3,000 (gross amount)
Select: 20% TVA rate
Result:
Net: €2,500
TVA: €500
Action: Enter €500 in both Box 1 and Box 4 of your TVA return.
No. Reverse charge is mandatory if the conditions are met. Both the supplier and customer must follow the rules. Non-compliance can result in penalties and interest.
Request a credit note and corrected invoice. Do not pay the TVA shown. Keep evidence of the request. Account for the transaction correctly under reverse charge rules.
Only if you are a contractor/principal. A sub-contractor can invoice their own sub-contractor under reverse charge, but only if they themselves meet the contractor definition.
Check DGFIP Notice 706/14 for the full list. If the service is labour or design-related to construction, and you're both registered contractors, it likely qualifies. When in doubt, ask the supplier or DGFIP.
The autoliquidation française only applies to services within la France. EU and international services follow different rules. Consult DGFIP or a tax advisor for overseas transactions.
Use our Reverse Calculatrice TVA or Calculateur Autoliquidation BTP to quickly work out TVA amounts from gross figures.