Circular 2026/C/60: Belgium Clarifies VAT Non-Transfer Rule for Temporary Cross-Border Goods Use

Circular 2026/C/60 on the amendment of Circular 2020/C/50

• The tax authorities previously adopted a more pragmatic approach, allowing non-Belgian established taxable persons with Belgian VAT identification to also apply this non-transfer rule, despite the literal wording of the Article.
• Due to a European Court of Justice ruling (CHEP Equipment Pooling NV, C-242/19) and the Article’s clear wording, this pragmatic application is being discontinued, requiring stricter adherence to the rule that goods must originate from Belgium for the non-transfer provision to apply.

Source fgov.be

Temporary use of goods in other Member States: new Belgian administrative position on the non-transfer scheme

• Belgian VAT authorities, in Circular 2026/C/60, have narrowed the scope of the non-transfer scheme for temporary use of goods in another Member State, following the CHEP judgment, restricting its application primarily to taxable persons established in Belgium.
• Previously, businesses with only a Belgian VAT identification number could sometimes use this scheme; now, a mere VAT ID is insufficient, meaning only those genuinely established in Belgium can typically apply the exception for goods dispatched from Belgium.
• This revised interpretation, effective May 7, 2026, could lead to increased VAT registrations, reporting obligations, and compliance burdens for various businesses, particularly those using Belgian distribution centers without being established in Belgium, including technical service providers, rental companies, and logistics operators.

Source VAT-Consult

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Belgium tightens rules on the VAT treatment of non-transfers of goods

• Belgian VAT Guidance Change: Belgian VAT authorities have updated their rules for the temporary cross-border movement of a company’s own goods within the EU for service provision.
• Stricter “Non-Transfer” Conditions: Previously, a mere VAT registration in the Member State of dispatch was sufficient for this “non-transfer of own goods” simplification. Now, the taxable person must be established in the Member State of dispatch to avoid a deemed intra-Community supply and acquisition.
• Significant Impact & Risk: This change affects both outbound and inbound movements, potentially triggering new VAT registration and compliance obligations in both Member States for businesses not established in the dispatching country, and creating risks of penalties for incorrect qualification.

Source EY

See also

ECJ C-242/19 (CHEP Equipment Pooling) – Judgment – Transfer of goods is not an intra-Community supply and refusal of a VAT refund due to lack of VAT registration is unjustified – VATupdate