Chargeability of VAT: transitional regime | KPMG | BE

Chargeability of VAT: transitional regime again extended in anticipation of change to legislation

Chargeability of VAT: transitional regime

Since 1 January 2013, new rules regarding the chargeability of VAT apply. The issuance of an invoice before the supply takes place or the service is completed no longer constitutes a moment when the VAT becomes chargeable (i.e. payable to the VAT authorities). Only the supply or completion of the service itself or the receipt of a (partial) payment prior to the supply or the completion of the service result in the VAT becoming payable (and deductible).

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Since 1 January 2013, new rules regarding the chargeability of VAT apply. The issuance of an invoice before the supply takes place or the service is completed no longer constitutes a moment when the VAT becomes chargeable (i.e. payable to the VAT authorities). Only the supply or completion of the service itself or the receipt of a (partial) payment prior to the supply or the completion of the service result in the VAT becoming payable (and deductible).

 

At the occasion of those new rules, the VAT authorities provided a transitional regime for 2013 which was extended to 2014.

 

In October 2014, the VAT authorities released a decision outlining the final regime which entered into force on 1 January 2015.

 

However, in November 2014, the VAT authorities again extended the transitional regime to 30 June 2015.

 

Now, in a decision of 17 April 20151, the VAT authorities have announced that, in anticipation of a new change to the legislation regarding the chargeability of VAT, the transitional regime is once again extended, this time indefinitely.

 

Until the new rules enter into force, VAT taxpayers are free to apply the final regime published in November 2014.

 

To be continued.

 

 

 

1 VAT decision nr. E.T.128.109 dd. 17.04.2015, published on Fisconet on 20.04.2015.

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