Belgium: New rules VAT chargeability, VAT groupings, small business exemption

VAT in Belgium

Parliament has passed legislation concerning the value added tax (VAT). Specifically, the legislative measures concern the chargeability of VAT, implement a judgment of the Court of Justice of the European Union on VAT groupings, and increase the VAT exemption amount for small businesses.

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VAT chargeable on issuance of invoice

One measure provides that VAT on the supply of goods and services in business-to-business (B2B) situations becomes chargeable upon the issuance of the invoice. If no invoice is issued before the 15th day of the month following the supply, VAT is chargeable on that date. If a (partial) payment is made before the supply, VAT is chargeable on the date of payment.

The rules for intracommunity supplies of goods and services do not change. Neither do the rules the cash-based regime for most business-to-consumer (B2C) supplies. For supplies of movable goods and services to public bodies (B2G supplies), the new law provides for a cash-based regime, except in instances when a reverse charge applies.

The new rules are effective 1 January 2016.

The current rules regarding the chargeability of VAT, which were effective 1 January 2013, caused many practical concerns for businesses. Therefore, the tax authorities provided for a transitional regime that was eventually extended indefinitely, in anticipation of a legislative change, which has now been passed.

 

Read a November 2015 report prepared by the KPMG member firm in Belgium: VAT legislation adopted regarding chargeability of VAT, VAT groupings and small businesses

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