The Belgian tax authorities have decided to postpone to April 2016 a requirement that “legal persons” acting as directors are subject to value added tax (VAT) on their directors’ fees.
A November 2014 decision by the VAT authorities effectively determined that legal persons acting as directors would need to register for VAT purposes, and that beginning 1 January 2015, these directors would be considered to be “taxable persons” for VAT purposes. However, it was subsequently determined to postpone the introduction of this VAT treatment until 1 January 2016.
The VAT authorities have postponed the implementation of the VAT rules for directors’ fees until 1 April 2016 in anticipation of a circular letter that is expected to comment on the new regime.
To date, individuals acting as directors have remained outside the scope of VAT, although it seems that this rule could evolve further given possible reaction within the European Union.
Read a November 2015 report prepared by the KPMG member firm in Belgium: Legal persons acting as directors subject to VAT – Postponed again until 1 April 2016
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