Is fiscal representative compulsory in Belgium ?
Belgium is a European Union Member State. If your business is established in another European Country appointing a tax agent or VA representative is not compulsory.
Belgium yes REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in Belgium is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) () provided by in Belgium like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in Belgium and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Belgium to another State, being third country or Member state.
In most cases your VAT number in Belgium will be similar to BE#012.345.678 (# = 0 /1).
What is the threshold for deliveries to particulars individuals in Belgium ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :EUR 35,000
EUR 11,200 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in Belgium ?
Standard VAT rate in Belgium is 21%, while intermediate rate is -. On the other hand, reduced rate is 6%, 12%.
Application of Article 37 and 109 to 122 of the VAT Directive in Belgium : zero-rated; exempt; exempt with credit
Please note that we open access to a detailed table of VAT rates per goods and services in Belgium :
See our section https://becompliant.tax/vat-rates-belgium
What is the scope of a fiscal representative in Belgium?
Fiscal representative should always diagnose your operations in Belgium and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in Belgium ?
Your fiscal representative in Belgium will have to submit periodically on your behalf.
The VAT form you are expected to submit in Belgium :
In Belgium, the periodicity of VAT (locally called Belasting over de toegevoegde waarde (BTW)
Taxe sur la valeur ajoutée (TVA)) is as follows :
Monthly VAT returns in Belgium are due 20th of each following month, always that Default
Your VAT payment is due : same as return.
Quarterly VAT returns in Belgium are due 20th of each following quarter, always that Turnover (VAT exclusive) does not exceed EUR2.5 million (EUR250,000 for specific business sector) and quarterly intra-EU supplies under EUR50,000
Your VAT payment is due : same as return, except December to be paid on the 24th of December (possibility to avoid).
What are the E/ICSL a fiscal representative submits in Belgium
The ECSL you are expected to submit in Belgium : montly / quarterly (20th of the following month)
Your statistical declarations (Intrastat) in Belgium : 20th of the followig onth
What are the late registration penalties in Belgium ?
A penalty is assessed for late submission of a VAT return in the amount of EUR100 per month, up to a maximum of EUR1,000.
Since July 2018, new detailed guidelines have been issued. The Belgian VAT legislation contains a detailed list of administrative penalties, both proportional and non-proportional, which the VAT authorities automatically impose when violations against Belgian VAT legislation are detected. The new guidelines classify all violations into different categories. For certain categories, the new penalty policy will apply, while other categories are subject to additional conditions or are explicitly excluded from the application of the new penalty policy.
For some categories, the penalties will automatically be cancelled if the below four conditions are fulfilled:
It is the first violation of the same nature in a period of four years (“reference period”).
The taxable person committing the violation was deemed to act in good faith. It is important to note that from now on, good faith will be assumed. The Belgian administration has to prove the contrary.
An individual and motivated request should be submitted, clearly indicating all reasons why the taxable person is applying for a waiver.
Upon filing of the request, the taxable person has complied with the obligation for which a fine was imposed and has submitted all periodic VAT returns.
For violations identified at the occasion of an audit that have no impact on the VAT (payable or refundable) position, the new penalty policy will apply. This is for example relevant for incoming invoices for which the recipient does not apply erroneously the reverse-charge mechanism. In that situation the non-application of the reverse charge could lead in principle to (proportional) penalties. However, on basis on the new penalty policy, the penalties imposed for the first violation could be canceled.
For fines imposed relating to the second violation of the same nature in the reference period, the amount of the fine will be reduced to 2%. For fines imposed relating to the third and all subsequent violations of the same nature in the reference period, the fine will be reduced to 5%. These reductions are subject to the above conditions.
Certain categories of violations are explicitly excluded from the application of the above policy (e.g., nonpayment of VAT due, late submission of periodical VAT returns, fraud, etc.). It is important to note that even when the new fine policy does not apply, the VAT authorities may still allow the application for a waiver or reduction of the fine on the grounds of force majeure or based on specific elements of the case.
The guidelines also reconfirm the substance-over-form principle, introduced by ECJ case-law in case of noncompliant purchase invoices. This implies that the mere observation that an invoice does not meet the applicable invoicing requirements no longer result in a rejection of input VAT deduction. Instead, it opens the possibility to provide corrective invoices or other supporting documents so that the VAT deduction can be safeguarded.
The Belgian administration will apply these new guidelines to all requests submitted after 1 April 2018, for fines which were imposed after 1 January 2018.
Where to find official information about VAT in Belgium
Belgium transposed the European Directive into national regulation The Code of Value Added Tax (VAT Code) and the decrees taken for its implementation.
The Revenue administration responsible for VAT in Belgium is :
Belgian Ministry of Finance
You can gather more information by contacting the directly :
Legislation (VAT department)
VAT and INTRASTAT compliance in Belgium
request a free estimate
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