Recent VAT Developments in Belgium – An overview

Highlights

• Will Belgium introduce madatory B2B E-Invoicing & Real Time Reporting soon?
• Circular 2021/C/96 on the VAT exemption for transport services directly related to an export of goods
• Draft bill: Mixed use of goods and services to be based in actual use
• Digital receipt will become the norm
• Intrastat: Transaction codes will change to 2 digits as of 2022

And ..

• Reduced VAT rate for hair prostheses

 

Taxable persons

• Budget 2022: VAT for Airbnbs

Taxable transcation

• The grant of a right to build entails the transfer of the ownership, subject to VAT

 VAT Rate

• 6% Reduced VAT Rate for Face Masks and Hydroalcoholic Gels extended till December 31, 2021
• Extension of the reduced VAT rate on mouth masks and hydroalcoholic gels
• Reduced VAT rate for hair prostheses

 Exemption

• Extension Of VAT Exemption For Supplies Of Masks And Medical Equipment

 Deduction

• No 15-year revision period for conversion works
• Draft bill for VAT changes: Mixed use of goods and services to be based in actual use
• 5-year revision period for the construction of an office to an existing home

Liability of VAT

• Draft bill – Liability for tax liabilities company directors expanded

Registration

• Rules amended for calculating guarantee when VAT fiscal representative is appointed

E-Invoicing

• Walloon region will make e-invoicing the preferred method for B2G transactions in 2022
• Budget agreement: Gradual transition to E-invoicing (and Real Time Reporting?) for B2B transactions
• Belgium e-invoicing proposal to combat €3.6 billion in missing VAT

Reporting

• OSS declaration for deliveries and services to private individuals – 2nd Quarter declaration due Oct 1, 2021
• Fiscalization in Belgium
• Mandatory receipt in catering/hospitality business will disappear next year: “Digital receipt will become the norm”

Flat rate schemes

• Response tax authorities to the judgment of the Council of State on the flat-rate VAT scheme for pub owners
• Coronavirus – Hairdressers: adjustment of the calculation of the VAT lump sum for the 3rd quarter 2021

Circulars

• Circular 2021/C/88: Extension of the temporarily reduced VAT rate for mouth masks and hydroalcoholic gels
• Circular 2021/C/92: IC transfer of materials by a contractor carrying out work on immovable property and using the OSS scheme
• Circular 2021/C/96 on the VAT exemption for transport services directly related to an export of goods
• Circular 2021/C/79 on the extension of the reduction of interest on VAT in the context of the temporary support measures due to the COVID-19 pandemic

Intrastat

• Intrastat: Transaction codes will change to 2 digits as of 2022

Coronavirus

• Belgium Ends Customs and Excise Support for COVID-19

E-Commerce

• Distance selling for micro-enterprises