Case
Your company based in the United States imports goods in Belgium where they are temporarily stocked (importation of goods in Belgium). The goods are sold to various EU companies located all around Europe afterwards.
VAT registration is required and VAT must be paid immediately …
Your company, acting as the importer of the goods, should normally be VAT registered through a VAT representative in Belgium (where the goods are put into free circulation) and pay Belgian VAT immediately (cash payment: VAT on importation is paid to customs authorities at the border where the goods enter the European Union).
….unless a deferred payment is applicable
Member States determine the conditions under which the imported goods should be introduced into their territory. They prescribe the process to declare the importation of goods towards the Authorities. Member States may allow for the VAT to be paid subsequently in a periodic VAT return. This declaration will include both the VAT due and the deductible VAT (postponed accounting via VAT return). A payment delay may also be authorized (deferred payment).
Belgium implemented both solution: postponed accounting via VAT return (licence ET 14.000) and deferred payment.
Managing your cash flow
Managing the cash flow of your company is a key issue. Despite of the principle of VAT neutrality, cash-flow inconvenience derived from the VAT system is a major concern and is perceived as having a significant financial impact. However, Belgium offer procedures whereby said cash flow inconvenience can be mitigated or avoided. Companies importing goods from a Third Country (i.e. non EU places) into Belgium must pay attention to the following issues:
- Check whether or not import can be VAT exempt (bonded warehouse, VAT warehouse, tax warehouse, importation of goods followed by a subsequent intra-EU supply etc.);
- If no VAT exemption is applicable, proceed with the Belgium VAT registration;
- Check the conditions to apply the postponed accounting or deferred payment of import VAT in Belgium.