VAT updates in Belgium
In January 2022, the Council of the European Union granted their approval to Belgium VAT to continue applying the small business VAT exemption. This VAT exemption will apply to small businesses whose annual turnover does not exceed EUR 25,000. This means that small businesses will not have to complete the below steps:
- Change VAT to customers
- Submit periodic VAT returns; and
- Pay VAT to the Treasure.
While small businesses do not have to worry about the above, they must:
- Submit a declaration of commencement, modification or cessation of activity;
- Submit a declaration of intra-Community supplies for intra-Community deliveries and services provided, declaration of intra-Community supplies;
- Must have a VAT identification number;
- Have certain obligations in relation to accounting and invoicing etc;
- Not deduct VAT;
- Must submit a list of your customers; and
- Submit a special VAT return in cases of intra-Community acquisitions or services for which they are liable for VAT.
VAT units and certain sectors are excluded from this scheme:
- Catering
- Supply of old materials; and
- Construction work.
To apply for the exemption scheme, existing businesses will have to enter a form 604B (amending declaration of a VAT identification) via MyMinfin.
For new businesses, when they commence activity, a request for registration for VAT purposes (form 604A) must be submitted. They must determine the VAT scheme using the estimated turnover (excluding VAT) and activity. If a business wishes to opt for the VAT exemption scheme and they meet the conditions, this can be done using a form 604A. If a business leaves the scheme, it cannot return to the scheme until 1 January following the third year after the change in scheme.
