Belgian VAT on foreign employer’s company car for Belgian residents? And vice versa?

• Foreign employers providing company cars to employees residing in Belgium may have to pay Belgian VAT if the car is made available for more than 30 days and is provided “for consideration”.
• This results in a VAT registration obligation for the employer, with penalties for non-compliance.
• Belgian companies with employees residing abroad may also be obliged to carry out similar regularizations for their foreign VAT obligations.
• Questions may arise regarding situations where a company car qualifies as “for consideration”, the calculation of VAT due, and whether to register locally in Belgium or abroad for VAT purposes.
• It is recommended to carry out spontaneous regularizations to avoid proportional penalties.

Source EY

See also

• C-288/19 (QM) – Judgment – Definition of short term hiring of vehicles, company car provided to an employee is not a service provided for consideration

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• Join the Linkedin Group on ECJ VAT Cases, click HERE
• For an overview of ECJ cases per article of the EU VAT Directive, click HERE

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