LOCAL VAT MEASURES FOR FOREIGN COMPANIES IN BELGIUM
Belgium had simplification measures applicable for call-off stock arrangements up to 31/12/2019. If conditions were met, foreign companies were not required to register for VAT purpose locally.
Since 01/01/2020, the European simplification regime for call-off stock arrangements ("2020 Quick Fixes") entered into force and is to be applied by all Member States. This implies that all other possible national arrangements regarding call-off stock arrangements are mute and, if they provide for divergent rules, should be viewed as not in line with EU Law.
Simplification measures applicable for call-off-stock arrangements in Belgium up to 31/12/2019 have been withdrawn and replaced by the new European simplification VAT regime in respect of call-off stock accordingly.
Triangulation can be applied when the middleman (B) is VAT registered for others supplies in the 3rd country (Member State of destination)?
Yes
Triangulation regime ABC can be applied even if the middleman B is VAT registered as a non-established company in Belgium [Member State C].
Triangulation can be applied when the chain transaction involves four or even more parties?
Yes
Belgium applies the special regime in chain transaction involving four parties provided Belgium is Member State 4 [country of arrival of the goods] and the transport is linked to supply B-C. This measure will allow C to avoid VAT registration in Belgium.
Chain transactions refer to successive supplies of goods which are subject to a single intra-Community transport. The intra-Community movement of the goods should only be ascribed to one of the supplies, and only that supply should benefit from the VAT exemption provided for the intra-Community supplies. The other supplies in the chain should be taxed and may require the VAT identification of the supplier in the Member State of supply.
However, the divergent approach amongst Member States in the application of these exemptions for cross-border transactions has created difficulties and legal uncertainty for businesses.
Optional reverse charge for supply of goods?
Yes
Reverse charge is applicable to all domestic supplies of goods carried out by a taxpayer not established in Belgium provided the customer is a taxpayer established in Belgium filing ordinary VAT returns or a taxpayer not established in Belgium having a VAT number as well as a VAT representative in Belgium.
Optional reverse charge for supply of services
Yes
Reverse charge is applicable to all domestic supplies of services carried out by a taxpayer not established in Belgium provided the customer is a taxpayer established in Belgium filing ordinary VAT returns or a taxpayer not established in Belgium having a VAT number as well as a VAT representative in Belgium.
Optional reverse charge (art. 194 of the VAT Directive)
Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.
VAT Warehousing implemented in Belgium?
Yes
Belgium has introduced VAT warehousing regime applicable under specific conditions. In this case, the transaction is exempted and no VAT registration is required for the foreign company.
VAT Directive
Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.
Is it possible for a company to pay the import VAT via the periodical VAT return?
Yes
Postponed accounting via the VAT return is possible under specific authorization (licence E.T. 14.000). A specific deferred payment for VAT purposes only is also applicable under conditions.
VAT DIrective
Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return to be submitted.
- Deferred payment means that the payment of the import VAT to customs is deferred for a nationally determined period. This is covered by Article 211, §1 of the VAT Directive which provides that Member States shall lay down the detailed rules for payment of the import VAT;
- Postponed accounting means that import VAT is accounted for and paid with other VAT obligations in the periodic VAT return. This is covered by Article 211, second paragraph, of the VAT Directive.
VAT OBLIGATIONS IN BELGIUM
How is the tax period determined in Belgium?
Monthly/Quarterly
Your company has to report its VAT position by filing periodical VAT returns on a monthly basis [standard tax period]. Quarterly reporting period can be opted for under conditions.
When should periodical VAT return be filed?
Periodical VAT returns must be filed by electronic means via "Intervat" to Belgian VAT authorities before the 20th day of the month [20 of N+1] following the tax period [month/quarter] to which it relates.
VAT Directive
The tax period shall be set by each Member State at one month, two months or three months. Member States may, however, set different tax periods provided those ones do not exceed one year. The VAT return shall be submitted by a deadline to be determined by Member States. That deadline may not be more than two months after the end of each tax period.
Is this requirement laid down in the country and what is the filing deadline?
Foreign companies are required to file a yearly statement reporting taxable transactions [goods and services] with all taxable persons identified for VAT purposes in Belgium. The statement should be filed by electronic means via "Intervat" before March 30th of the next calendar year.
VAT Directive
Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year. That return shall provide all the information necessary for any adjustments.
Are quarterly filings allowed by the country and what is the filing deadline?
The recapitulative statement [ESL] must be drawn up depending on the periodicity of the VAT return [month/quarter].Foreign companies filing quarterly VAT returns have to submit the statement on a quarterly basis accordingly. ESL should be filed by electronic means via "Intervat" before the 20th day of the month following the reporting period [month or quarter] to which it relates.
VAT Directive
The recapitulative statement shall be drawn up for each calendar month. However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency. The recapitulative statement shall be submitted within a period not exceeding one month.
What is the payment deadline?
The VAT due should be paid by filing deadline for the VAT return - no later than the 20th day of the month after the end of the tax period [month/quarter] to which it relates.
Are interim payments required?
End of prepayments for taxpayers filing quarterly VAT returns (01/04/2017). A "December advance payment" must be made on December 24th for all taxpayers.
VAT Directive
Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. Member States may, however, set a different date for payment of that amount. Member States may require interim payment to be made.
Is any VAT credit automatically carried forward or refunded?
A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for.
VAT Directive
Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.
VAT OVERVIEW IN BELGIUM
What is the local name of the tax?
Belasting Over de Toegevoegde Waarde - Taxe sur la Valeur Ajoutée [BTW, TVA]
What is the structure of the VAT number?
Belgian VAT numbers have 12 characters [BE + 10 digits]. The first number following the prefix is always "0". The last 2 digits constitute a control number.
VAT Directive
Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services. Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.
VAT rates
Belgium applies a standard VAT rate of 21% and two reduced VAT rates: 6% and 12%.
€ 35,000
see various thresholds applied in the EU
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