VAT Developments in Belgium in the last month …. A story of business friendliness

Taxable transactions

• VAT on the way to dentist and physiotherapist
• Electrification company car fleet – VAT considerations
• Update on VAT law amendments: Deemed supplies of commercial samples and gifts of small value, commercial samples, and certain charitable food and other essential non-food products
• Demolition and reconstruction: VAT authorities publish updated FAQ

Place of supply

• Special positioning rule for seminars and cultural events extended

Rates

• Belgium Notes Extension of 6% Reduced VAT Rate for Masks and Hydroalcoholic gels
• Reduced 6% VAT rate for masks and hydroalcoholic gels and reduced interest rate for outstanding VAT debts extended until 30 September 2021

ECJ Cases

• ECJ C-330/21 (The Escape Center) – Questions – VAT rate applicable to he right to use sports facilities if no individual/group guidance is provided
• Flashback on ECJ Cases C-439/04 (Axel Kittel) & C-440/04 (Recolta Recycling SPRL) – Right to deduct VAT may be refused if participating in VAT fraud.
• Flashback on ECJ Cases C-37/95 (Ghent Coal Terminal) – Right to deduct VAT in case good are not used beyond the control of the taxpayer

Exemption

• Amendments to VAT exemption for medical and hospital care
• VAT exemption for medical care: limited to therapeutic purpose from 1 January 2022
• Update on VAT law amendments: Exemption for collective investment funds management, to include “institutions for investments in debt securities”

Deduction

• Belgian Supreme Court rules in the case Vos Aannemingen dealing with the VAT recovery of real estate agent fees in case of split sales

Registration/deregistration

• Belgium Announces VAT Registration and Deregistration Must be Filed Electronically
• Applications to start, change, and stop a VAT activity to be submitted online

Reporting

• Update on VAT law amendments: Call-off stock registers and VAT groups to allow a waiver for VAT groups from the obligation to maintain registers on the call-off stocks (and instead impose this task on the individual members of the VAT group)
• Belgium Announces Summer Holiday 2021 Extensions for VAT Declarations
• Extended deadlines for filing VAT returns
• Postponement VAT return filings during Summer period 2021

Covid-19

• Extension of VAT relief measures (COVID-19)
• COVID-19: Payment plan from 12, 24, 36 or 50 months for companies with payment difficulties

E-Commerce

• VAT and e-commerce: Belgium implements new rules on importer of record
• Update – Belgium Issues Release on Royal Decree for Implementation of EU VAT E-Commerce Rules
• Implementing decree transposing E-Commerce Directive
• Draft Royal Decree x-border B2C e-commerce and VAT registration via fiscal representative
• Belgium Announces Royal Decree for Implementation of EU VAT E-Commerce Rules
• Asian webshops fraud with VAT and customs via Zaventem airport

Penalties

• Reduction of VAT Penalty for non or late payment from 15 to 10% for the 3rd quarter of 2021

ECJ Cases

• ECJ C-330/21 (The Escape Center) – Questions – VAT rate applicable to he right to use sports facilities if no individual/group guidance is provided
• Flashback on ECJ Cases C-439/04 (Axel Kittel) & C-440/04 (Recolta Recycling SPRL) – Right to deduct VAT may be refused if participating in VAT fraud.
• Flashback on ECJ Cases C-37/95 (Ghent Coal Terminal) – Right to deduct VAT in case good are not used beyond the control of the taxpayer