- Overview of the System: Belgium’s postponed accounting system for import VAT allows VAT-registered businesses to defer VAT payments on imported goods, enabling them to declare and deduct import VAT on the same VAT return, which improves cash flow and reduces administrative burdens.
- Application Requirements: Businesses must meet specific conditions to use this system, including submitting a formal application, demonstrating previous import activity, and fulfilling VAT obligations for the past four quarters. The license is generally granted within a month and is valid indefinitely unless revoked due to non-compliance.
- Cash Flow Management: This system alleviates the need for pre-financing VAT at customs, thus mitigating cash flow issues commonly associated with VAT payments. However, businesses must remain compliant with reporting requirements to maintain their authorization and avoid penalties from the tax authorities.
Source vatdesk.eu
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