VAT package 2010 - Be sharp on timeDeloitte Belgium Tax Quarterly - Issue 38 - October 2009 |
On 1 January 2010 a series of significant changes to EU VAT legislation will be launched. These changes are better known as the VAT Package.
Such a major initiative has not taken place since 1993 and this new VAT package will affect all businesses rendering or receiving services (both to/from third parties as well as inter-company) in a cross border context.
Member States need to amend their local legislation to include the new rules before year-end. In Belgium, draft legislation implementing the new rules of the VAT package has been published in September 2009. Detailed guidance from the tax authorities is expected later in the year.
In the coming weeks and months businesses face the major task of adapting their existing systems and processes to ensure that by 1 January 2010 they are able to cope with the new guidelines. The main changes concern (1) the introduction of a set of new rules determining where services are taxed and (2) increased reporting requirements.
I don’t sell services. Is this change relevant for my business?
The changes being introduced will not only affect businesses which supply services, but also those receiving cross border services (both from third parties as well as inter-company).
In fact, under the new rules services can mostly be exchanged cross border without VAT, all businesses purchasing cross border services will need to analyse whether they are under an obligation to operate the reverse charge for their purchased services.
In other words, the changes to the place of supply rules will require for all businesses to make a thorough review of their incoming transactions.
The attached brochure addresses other questions such as:
- Does the VAT package bring savings to my business?
- Do the same rules apply for all my group companies?
- Is the VAT package really a simplification?
- What do I need to do to comply with the new rules?
... and much more.
VAT package 2010 - Be sharp on time
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