Belgium Postpones Stricter VAT Rules for Temporary Cross-Border Use of Own Goods until July 2028

Summary

Belgium has postponed the application of its stricter interpretation of the VAT “non-transfer” rule for temporary cross-border movements of own goods until 1 July 2028. [vat-consult.be]
Until and including 30 June 2028, a taxable person that is not established in Belgium but is VAT-registered there may continue to apply the Belgian non-transfer treatment when goods are temporarily moved to another Member State for use in supplying services. [vat-consult.be]
The treatment remains conditional on the destination Member State accepting the same interpretation and on the taxable person recording the movement of the goods in its accounts. [vat-consult.be]

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Extended article

The Belgian VAT authorities have postponed the application of a stricter interpretation affecting temporary movements of own goods between Belgium and other EU Member States.

Under the normal VAT rules, the movement of a taxable person’s own goods from one Member State to another may be treated as a deemed intra-Community supply in the Member State of departure and a corresponding intra-Community acquisition in the Member State of arrival. This treatment can trigger VAT registration and reporting obligations in both countries. [ey.com], [dlapiper.com]

An exception applies where goods are moved temporarily to another Member State for use by the taxable person in connection with services supplied there, provided that the goods subsequently return to the Member State of departure and the other applicable conditions are satisfied. Such a movement is generally referred to as a “non-transfer” of own goods.

Historically, Belgium applied this exception pragmatically. A business did not need to be established in Belgium to use the simplification for goods dispatched from Belgium. Belgian VAT identification was considered sufficient. [ey.com]

Following the judgment of the Court of Justice in CHEP Equipment Pooling, Case C-242/19, Circular 2026/C/60 introduced a stricter interpretation. Under that interpretation, the simplification would only be available where the taxable person is established in the Member State from which the goods are dispatched. Mere VAT registration would no longer be sufficient. [vatupdate.com], [ey.com], [dlapiper.com]

Belgium has now postponed application of this stricter position until 1 July 2028.

Until and including 30 June 2028, a foreign taxable person that is VAT-registered but not established in Belgium may continue to apply the previous Belgian treatment where goods are temporarily dispatched from Belgium to another Member State for use in supplying services. [vat-consult.be]

The continuing simplification is subject to important conditions:

the goods must be used temporarily in the other Member State;
the use must relate to a supply of services by the taxable person;
the goods must remain part of that person’s business assets;
the goods must return after the temporary use;
the movement must be recorded in the taxable person’s accounts; and
the tax authorities of the Member State where the goods are temporarily used must accept the same non-transfer treatment. [vat-consult.be]

The same principle applies in reverse where goods are temporarily brought into Belgium from another Member State. In that case, the Member State of departure must likewise accept the non-transfer treatment.

The postponement is particularly relevant to businesses using Belgian warehouses or distribution centres without having an establishment in Belgium. It temporarily defers the additional VAT registrations and reporting obligations that could arise solely from temporary movements of equipment, reusable assets or other business goods.

The announcement does not cancel the stricter interpretation. It moves its application date to 1 July 2028, giving businesses additional time to identify relevant flows and determine whether the Member States involved apply compatible treatment. [vat-consult.be]