Belgian VAT Desk

Find below the latest news:

VAT FLASH N°509
Importation of goods followed by an intracommunity delivery

Context
The importation of goods is exempted from VAT if followed by a supply or transfer of those goods to a taxable person in another Member State. This exemption enables the importer to avoid pre-financing VAT at the moment of the importation.

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VAT FLASH N°508

Storage of goods- a Belgian story

It often happens that a foreign company uses a Belgian provider to temporarily store their goods. This storage service may be accompanied by other services (handling, loading, unloading, transportation of goods to the final destination, etc.). The service provided can consist of a passive use (simply providing a storage space) or an active use in the field of providing storage services ("warehousing" contract - complex set of services).

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VAT FLASH N°507

Monthly refund of VAT credit 

Until today, monthly VAT refunds (through Belgian VAT returns) were only possible for businesses involved in international deliveries of goods. Due to the economic crisis, the Belgian government has decided to extend the possibility of monthly refunds to certain services suppliers.

Beneficiaries

The businesses concerned by the extension of the monthly VAT refund regime are the following:

• Businesses supplying services localized in Belgium and for which VAT liability is shifted to the customer. Businesses in the construction sector are principally targeted (reverse charge mechanism).
• Businesses supplying services localized outside of Belgium. It concerns principally businesses supplying services of intellectual nature, advertising services, etc. to taxable persons established in another Member state or to an individual established outside of the European Union.
• Businesses in the construction sector in Belgium having operations subjected to the reduced VAT rate of 6%. It concerns principally entrepreneurs providing renovation services for private housing.

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VAT FLASH N°506

« VAT PACKAGE » - New rules: Place of supply of services

Current rules

The general rule defines the place of supply to be deemed as the place where the supplier is established. Consequently, a Belgian business invoicing supply of services to a foreign company is deemed to issue an invoice with Belgian VAT.

However, the general rule has a number of particular provisions specifically planned by law that take into consideration the nature of services to determine its place of supply. For example, place of supply for services of an intellectual nature is deemed to be within the country where the customer is established; place of supply for services connected to immovable goods is deemed to be where the building is located, etc. As a result, a Belgian business invoicing supply of services of an intellectual nature to a foreign company is deemed to issue an invoice without VAT.

The general rule is of auxiliary application to these provisions therefore, in a situation where an exception applies, the general rule doesn't.

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