In these times of serious economic crisis, the risk of business failure is greater than ever.
So what should you do if your client goes bankrupt? Can you in this situation claim back the VAT on your receivables ?
The company that has to pay a penalty can defend itself. The penalty imposed by the tax administration must be proportionate to the objectives set by the VAT Directive, i.e. to ensure tax collection and to prevent fraud.
Relations between a parent company and its subsidiary: caution with the fixed establishment in VAT
Combined with the general reverse charge mechanism applicable in Belgium, the option for a foreign company to appoint a fiscal representative can be useful in order to avoid pre-financing of VAT. Indeed, that mechanism renders the client liable for the VAT due when the latter is a Belgian company submitting periodical returns or a foreign company identified for VAT purposes in Belgium with a fiscal representative.
Importation of goods en route to another EU country (“customs procedure 42”)
The generalized reverse charge mechanism has been introduced in Belgium since 2002 and is applicable to all supplies of goods and services that are deemed to take place in Belgium and performed by a taxable person not established in Belgium
Foreign businesses performing constructions services in Belgium should pay attention to various tax, social and legal aspects: VAT, Non-resident income tax for the company, Non-resident income tax for the worker, Social security obligations, Labour law
The generalized reverse charge mechanism for VAT has been introduced in Slovenia since 2022 and applies to all supplies of goods and services that are deemed to take place in Slovenia.
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