Obtaining VAT status
In Belgium, the carrying out of a business activity requires VAT status and the payment of VAT. Belgian legislation states that an application for a VAT number must be submitted no later than 30 days after the first taxable activity is carried out. Voluntary registration is not possible, so the entity can only register once tax liability has occurred.
Company registration
Foreign companies can register for VAT as non-residents. In this case, the establishment of a local company is not required and entities originating from within the European Union do not have to choose a VAT representative. However, one must be established for companies outside the European Union. The VAT representative is responsible for settling all obligations that apply to the taxpayer in relation to transactions carried out in Belgium.
VAT number in Belgium
The Belgian VAT number consists of 12 characters. The first 2 are the VAT code BE, which identifies the Member State of the European Union. The number contains 10 digits, and the last 2 are a control number. Validity of the VAT number can be checked using the VIES tool, which allows the verification of all numbers issued by the European Union Member States and Northern Ireland.
Online registration
VAT registration can be done conveniently online. Foreign companies are required to submit documents such as a form describing the circumstances of registration, the companys articles of association, a copy of the excerpt from the commercial register, a certificate of registration as a taxpayer, and a copy of invoices or orders confirming activity in Belgium. Registration takes no more than two months, usually up to a maximum of four weeks.
Several VAT rates
Belgium has 4 VAT rates: a standard rate of 21%, reduced rates of 12% and 6%, and a 0% rate. Reduced rates are applied to, among other things, food services, social housing, water distribution, electricity, natural gas, and the use of cultural, sports and entertainment facilities. Services related to education, banking, insurance or real estate sales are exempt from VAT. Tax groups can change over time, so be sure to keep up to date with current tax regulations.
Filing VAT returns
VAT returns in Belgium should be filed monthly. VAT taxpayers with an annual turnover of less than 2,500,000 EUR may file quarterly returns, but this does not apply to companies dealing in computers, mobile phones, vehicles and energy products. In addition, entities required to file a monthly ESL recapitulative statement must automatically file monthly VAT returns. In some cases, it is also possible to claim a VAT refund or the amount of the refund can be carried forward to the next accounting period.
Cooperation with a tax office
The tax system in Belgium is quite complicated, and basic information included in this quick Belgian VAT guide may be insufficient. That is why many individuals starting a business in the country choose to cooperate with a specialized tax bureau such as INTERTAX. This allows the company to always operate in compliance with the dynamically changing regulations, and the partners can focus on developing the products and services offered on the market.
