Risks of Paying a Contractor without an Invoice

Questioner

I hired a contractor for a job on my house and paid cash without an invoice. The tax authorities are now investigating this contractor for VAT fraud and are requesting me, as the client, to provide information. Before I provide that information, I want to know what risk I am running. Can the tax authorities impose a fine or additional assessment on me if they determine that I have consciously or unconsciously cooperated in VAT fraud?

Lawyer

You should submit this question to a tax specialist. In my opinion, you only run a risk if it turns out that payment was made without VAT at your request. Outside of that, only the contractor runs a risk: he is the one who must invoice correctly and pay VAT. The fact that you have not received a written agreement or an invoice does not matter because the law does not prescribe that you may only pay after receiving a correct invoice. The law also does not stipulate that a construction contract must be entered into in writing.