A draft law has been proposed to revise the chargeability of value added tax (VAT) rules, so that VAT generally would be chargeable upon the issuance of the invoice. If enacted, the new rules are expected to be effective beginning in 2016.
Businesses expressed concerns about the rules regarding the chargeability of VAT. To address these concerns, the Belgian tax authorities provided a transitional regime that was eventually extended indefinitely, in anticipation of a new change to the VAT rules. The federal government has now approved a draft law with new rules.
Under the proposal, VAT on the supply of goods and services in business-to-business (B2B) situations would become chargeable upon the issuance of the invoice. If no invoice is issued before the 15th of the month following the date of the supply, VAT would be chargeable on that date. If a (partial) payment is made before the supply, VAT would be chargeable on the date of payment.
The rules for intracommunity supplies of goods and services would not change, and neither would the cash based regime for most business-to-consumer (B2C) supplies. For supplies of movable goods and services to public bodies (B2G supplies), the government would provide a cash based regime, except in instances when a reverse charge applies.
The draft law has been sent to the Council of State for advice, and is subject to revisions. Therefore, the draft law can still be changed. The new rules are expected to enter into force as from 1 January 2016.
Read a July 2015 report prepared by the KPMG member firm in Belgium: VAT chargeable again upon issuance of invoice as from 1 January 2016
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.