Registration fee in Belgium: VAT authority sets out its position

In a published circular (2021/C/19), the Belgian tax administration takes note of this European case law and now agrees to take into consideration all relevant elements such as, among others, the duration, content and location of the event.

Consequently, it distinguishes between three situations:

• The educational event takes place physically in Belgium

The right to access the event will be taxed in Belgium when its duration does not exceed... seven calendar days.

So it is still the criterion of duration that remains ... the only determining criterion! The tax authorities are simply taking advantage of their commentary on the ruling of the Court of Justice to insidiously extend the taxation in Belgium of events organised there for seven days instead of one day as was the case in their former interpretation.

• The educational event takes place physically in another European country

The Belgian tax authorities decide ... not to take a decision: it is up to the tax authority of the European country concerned to decide on the place of taxation of the event.

If, however, a situation of double taxation should arise as a result of divergent interpretations of the rules on the place of taxation, the Belgian tax authorities will take a decision on a case-by-case basis, possibly after consultation with the competent authorities of that Member State.

• The educational event takes place physically in several European countries.

If an educational event takes place in more than one European country, the right of access should be considered, as a rule, as being provided in each of the countries concerned and distributed among them in proportion to the duration of each of the parts organised in each Member State concerned. However, the position of each country on the question of the place of taxation of the event will have to be checked beforehand.

With the publication of this new administrative point of view, the Belgian tax authorities are extending the taxation in Belgium of events lasting seven calendar days instead of just one day as it was the case in their previous interpretation.

For the rest, the new administrative circular is of no use to associations: the tax authorities remain totally silent on the issue of so-called "virtual" events (which is THE VAT issue in these times of pandemic) and confirm that they will not be relied on to settle the trying question of VAT on events organised abroad.

Worse, it already announces in its text that its new interpretation will inevitably lead to situations of double taxation.

Red Alert for international associations!