VAT Alert (23/10/2009)VAT package 2010 - Draft VAT legislation published in Belgium |
On 1 January 2010, a number of important changes to various VAT rules will enter into force in the framework of the implementation of various European Directives and Regulations. These changes are better known as the VAT Package. Member States need to amend their local legislation to include the new rules before year-end.
In Belgium, on 11 September 2009 the Ministry of Finance sent the Chamber of Representatives a draft version of the Law that seeks to amend the Belgian VAT legislation in the framework of the VAT package.
For a copy of this draft legislation, please consult the website of the Chamber of Representatives or download the documents directly via this link:
http://www.dekamer.be/FLWB/PDF/52/2157/52K2157001.pdf
As you may already know the main changes introduced in the draft legislation concern (i) the introduction of a set of new rules determining where services are taxed, (ii) changes in foreign VAT refunds and (iii) new reporting obligations.
New rules with respect to the place of supply of services and the debtor of VAT
As from 2010, an initial assessment should be made as to whether the recipient of the service is a business (B2B, new article 21 of the VAT code) or a private consumer (B2C, new article 21bis of the VAT code):
- B2B services will be taxed where the customer is established, or where the establishment is based for which the services are provided. A new reverse charge mechanism will be introduced for these services located in Belgium (new article 51, §2, 1 of the VAT code).
- B2C services will as a general rule be taxed where the service provider is established, or where the establishment is based from where the services are provided.
A limited list of clearly defined exceptions to the B2B and B2C general rules will exist, most of them applicable in 2010 as well.
Changes in foreign VAT refunds
At the moment, refund claims are filed through the so-called ‘8th Directive refund procedure’ whereby all relevant paper documents have to be sent directly to the foreign tax authorities. As of 1 January 2010, Belgian tax payers can submit their VAT refund requests electronically to the Belgian tax authorities (new RD nr. 56).
Increased VAT reporting obligations: New VAT reporting forms are made available on Fisconet.
Besides simplification, the VAT package will also introduce changes in the Belgian VAT reporting procedure. In this respect, please note that the Belgian VAT authorities recently published the new versions of the following forms on Fisconet :
- VAT return
- Annual Sales Listing (ASL)
- European Sales Listing (ESL)
The new forms can be downloaded via the following web link :
More information
For more explanation with respect to the changes introduced by the VAT package and the way they could affect your business, please consult our knowledge brochure on http://www.deloitte.com or download directly via :
VAT Package - Be sharp on time
VAT package 2010 - Deloitte is at your service
A general overview of all the services Deloitte is offering in the framework of the VAT package is to be found on http://www.deloitte.com or directly via :
The EU VAT package website
Furthermore, we would also like to bring to your attention that Deloitte has released a website dedicated to the changes in the various EU countries resulting from the implementation of the VAT Package.
This website contains a general explanation of the changes (“Overview of the new rules”) and links to the local draft legislation once it has been released (“Overview of Member State legislation and materials”). In addition, there is a “Country at a glance” page that shows some highlights per country. The Council Directives covering the changes are also to be found on the website (“EU legislation”). Moreover, we have included contact details of Deloitte VAT Package specialists whom you can contact should you have questions regarding the implementation in a specific country.
The website will be updated in the coming months while the draft legislations are published, amended and made final. Also changes in VAT return forms and the way ESL’s need to be filed will be monitored on the website.
The website can be found on http://www.deloitte.com . Or via the following link directly: http://www.deloitte.com/be/vat-package .