If in doubt, to know the VAT regime applicable to your business and to obtain qualified advice, speak to an accountant.
The normal diet
Each company must submit a monthly declaration. Companies whose turnover does not exceed 2,500,000 euros excluding VAT (250,000 euros excluding VAT for deliveries of mineral oils, mobile phone devices, computers and their peripherals, accessories and components, as well as that of land motor vehicles subject to registration regulations) may submit a quarterly declaration. For filing business taxes this is important.
- The VAT exemption concerns entrepreneurs who achieve an annual turnover not exceeding 25,000 € (excluding VAT).
- The flat-rate regime applies to companies whose annual turnover does not exceed 750,000 euros (excluding VAT), which mainly deal with individuals (mainly traders). ( see full list )
- The agricultural regime is reserved for farmers who have no other activity than cultivation, breeding, etc.
- The margin tax regime is applicable to second-hand goods, works of art, collection or antiques.
The transactions liable to VAT are:
- Deliveries of goods (subject to Belgian VAT if the place of delivery is located)
- The provision of services (anything that is not a delivery of goods)
- Imports (introduction into Belgium of a good from a non-EU country) the invoice does not mention any VAT but the buyer must pay it when the good enters Belgian territory. This tax is deductible.
- Intra-community acquisitions (introduction into Belgium of goods shipped from an EU member country. The invoice does not mention any VAT but the Belgian purchaser, subject to VAT, indicates the transaction and the tax in its VAT declaration the tax is deductible.
Your VAT obligations
A company subject to VAT is required:
To identify themselves with the competent office before the start of the activity (is done via the business counter), make periodic declarations (monthly or quarterly) for VAT, to pay the Treasury the VAT which it must charge to its customers, to transmit an annual list of customers and keep accounts and issue invoices.
VAT rates vary depending on the nature of the taxed good or service. The rates are currently 6%, 12% and 21%. They are set by royal decree. 6% mainly for basic necessities and for the provision of social services (ex: basic necessities, passenger transport, agricultural services, etc.)
12% for certain goods and services which from an economic or social point of view are important (e.g. coal, margarine, pay TV subscriptions, etc.), 21% for operations relating to goods or services which are not mentioned elsewhere (ex: new cars, electrical household appliances, perfume articles, etc.)