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.
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
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.