VAT Representative in Belgium: What You Need to Know

The article explains the VAT registration options for foreign companies doing business in Belgium:

European companies can register directly or through an agent, who acts as a proxyholder and does not require a deposit

Non-European companies must register through a VAT representative, who is responsible for meeting their VAT obligations and may require a deposit

The article also discusses the benefits of appointing a fiscal representative in some situations, such as avoiding pre-financing of VAT when the supplier is not established in Belgium

VAT is normally due by the supplier of goods or the service provider (general rule). Where, therefore, a foreign company carries out taxable operations in Belgium for which it is liable for VAT, it must charge Belgian VAT to its client.

In order to do so, it must register for VAT purposes and receive a Belgian VAT number either directly or either through a VAT representative:

In principle, non-European companies cannot register for VAT in Belgium themselves. They must do so through a VAT representative. This is a local company that will represent you towards the local VAT authorities. He is responsible for meeting all your VAT obligations, including those of which he has no knowledge. For this reason, the fiscal representative may require a deposit (e.g. a bank guarantee) from you before accepting the representation assignment.

European companies are not obliged to appoint a tax representative. However, to facilitate their relations with the local tax authorities, they may appoint a proxyholder (agent) to carry out the tax formalities on their behalf. In this case, it is not necessary to issue a bank guarantee. The company remains solely responsible for paying its VAT debts.

A French company purchases goods in Belgium and then resales them to a German firm which takes care of transporting them outside Belgium. The French company performs a taxable operation (an intra-community delivery) for which it is obliged to register for VAT purpose in Belgium. Appointing or not a fiscal representative on its own authority will depend on the place where its provider is established:

If its supplier is established in Belgium, the latter must issue an invoice charging Belgian VAT. There is no point for the French company to register for VAT through a fiscal representative. It can register directly for VAT purposes;

However, if its supplier is not established in Belgium (for example if it is a Dutch provider), the latter will also have to issue an invoice charging Belgian VAT unless the French company has a Belgian VAT identification number and a fiscal representative.In this case, the person liable for the payment of Belgian VAT to the Treasury is the French company itself (generalised reverse charge mechanism). Therefore it is useful for the French company to appoint a fiscal representative in such a situation in order to avoid any VAT pre-financing.

An Austrian company is operating a construction site in Belgium [construction work] on behalf of a German company which has a Belgian VAT identification number but no fiscal representative (direct registration for VAT purposes). It calls on Belgian subcontractors to undertake part of construction works.

The Austrian company is performing a taxable operation (construction works) for which it is obliged to obtain a VAT identification number and must invoice Belgian VAT to its German client since the latter did not name a fiscal representative in Belgium, although it has a Belgian VAT number.

However, subcontractors will not have to charge Belgian VAT to the Austrian company. Indeed, as from January 1st 2023, the designation of a fiscal representative is no longer required to apply the specific reverse charge mechanism for construction works. As a result, Belgian subcontractors will be able to issue invoices applying reverse charge to the Austrian company using its direct Belgian VAT number.

Registering for VAT in Belgium is mandatory for non-resident enterprises that perform taxable transactions in the country for which they are liable for the payment of the Belgian VAT.

Registering for VAT allows non-resident enterprises to claim back the VAT they paid on their purchases and expenses in Belgium.

Registering for VAT also helps non-resident enterprises to comply with the Belgian tax laws and avoid penalties or fines for non-compliance.

Registering for VAT requires non-EU resident enterprises to appoint a fiscal representative in Belgium who will handle their VAT obligations and filings.

If you are a foreign company that sells goods or services in Belgium, you may need to register for VAT in Belgium. However, the process of VAT registration can be complex and time-consuming, especially if you are not familiar with the Belgian tax system and the different options available. That's why you should contact our tax advising firm for Belgium VAT registration. We can help you with:

Choosing the best solution for your business needs and goals, whether it is a direct VAT registration, a fiscal representative, or a simplified scheme

Preparing and submitting the required documents and forms to the Belgian tax authorities

Managing your VAT obligations and compliance in Belgium, such as filing VAT returns, issuing invoices, and keeping records

Advising you on the applicable VAT rates, exemptions, deductions, and refunds in Belgium

Representing you in case of audits, inspections, or disputes with the Belgian tax authorities

We offer a free video conference to assess your situation and provide you with a tailored solution.

VAT Representative in Belgium: What You Need to Know

The Author of the Article

What Topics are Covered in this Article?

Choosing the Right VAT Registration Solution in Belgium

Which solution to choose?

Let's take an example : Purchase/ Re-sale of Goods

Let's take an example : Carrying out a construction work

The VAT expert's eye

Doing business in Belgium

Are you ready?

Why you should contact our tax advising firm for Belgium VAT registration?