In Belgium, VAT regulations are complex, covering various types of transactions subject to tax. Here’s a breakdown of key points:
- VAT Registration: Foreign companies conducting business in Belgium must obtain a VAT number. Evidence of business activity is required for registration. Retroactive registration is possible but may incur penalties and interest.
- Two Registration Systems: Foreign taxpayers can register directly or appoint a Responsible Representative for VAT matters. The Responsible Representative system is mandatory for non-EU companies.
- Processing Time: The tax office aims to issue a VAT number within 21 business days, but delays are common, with processing often taking 21-45 days [6].
- VAT Declarations: Monthly or quarterly VAT returns must be submitted by the 20th of the following month, with exceptions during the summer. Payments are due by the 20th, with no extensions granted.
- Taxable Transactions: Various transactions, including imports, exports, sales, storage, and construction services, require VAT registration. There are also specific thresholds for Intra-Community transactions and INTRASTAT reporting.
- VAT Rates: Belgium has standard (21%), reduced (12% and 6%), and 0% VAT rates, applicable to different goods and services. The reverse charge mechanism applies to transactions involving non-established suppliers.
Understanding these VAT regulations is crucial for businesses operating in Belgium to ensure compliance and avoid penalties.
Source Eurofiscalis
