Indirect tax (VAT)

VAT is a complex tax area which is exercised on consumption and regulated within the European Union under a framework of directives. VAT ought – in theory – to be neutral for VAT taxpayers, who can deduct input VAT on purchases and have to charge output VAT on sales. The reality can however be very different. 

Getting VAT – or other indirect taxes – wrong can result in huge problems for an organisation, in terms of additional costs, and stiff penalties imposed by the VAT authorities. Taking the time to get it right through effective planning and execution minimises risks, and can open up opportunities to produce real and significant savings. 

With over 150 professionals, our Indirect Taxes practice is by far the largest in Belgium. Through our VAT professionals, you have access to a wide variety of experiences and skills, extensive specialisation, strength in depth and a powerful global network of tax and related resources. 

We offer, amongst others, the following services: 

• Indirect tax consulting
• Tax management consulting for indirect tax
• Business model optimisation for indirect tax
• International indirect tax compliance and outsourcing
• Transactional consulting for indirect tax

Indirect tax consulting 

With a normal VAT rate of 21 percent, indirect tax exposures can grow quickly. This can be mitigated by timely planning. Our indirect tax specialists can help your business by providing advice and help on any indirect Tax matter or problem – often producing savings when none may have seemed possible. 

Whether you are planning to expand locally or internationally, your Belgian indirect tax consultant is there to support you. 

In most cases, environmental taxes are indirect taxes. We have the knowledge, the skills and the tools to support you when dealing with them. 

Indirect taxes have proven to be a very effective area for optimising cash flow. A review by our specialists could result in significant cash tax savings. 

Dealing with indirect tax compliance effectively is a real challenge. We have the people and the tools to help you.

Back to top

Tax management consulting for indirect tax 

A flawless tax reporting process is a key challenge for every global organisation. Enterprise Resource Planning (“ERP”) systems such as SAP and Oracle have embedded tax functionalities that facilitate a transparent, robust and efficient tax reporting process. However, these tools will only work effectively if tax is considered at the start of planning and designing an ERP implementation or upgrade. Without bridging the gap between the tax processes and the ERP’s financial modules, the system might not do what you expect or want it to do. 

Our Tax Management Consulting team helps clients optimise the tax functionalities within their technology platform, be it during (i) the selection of new ERP/tax software, (ii) the ERP implementation roadmap or (iii) the fine-tuning or maintenance of the tax tools in an existing solution. We also help organisations establish control and visibility over the entire tax reporting cycle, by automatically generating and managing VAT returns through bespoke Deloitte propriety software and by building tax reconciliation and analysing tools.

Back to top

Business model optimisation for indirect tax 

Our business model optimisation specialists make strategic tax planning an integrated part of supply chain transformation initiatives and make companies drive down their indirect tax costs. This requires an integrated approach where companies not only benefit from their operational improvements, but also retain more of their additional earnings by taking tax into account from the outset. 

Our specialist team can help you in designing and implementing a business operating model that embraces the convergence of technologies while optimising overall tax efficiency and decreasing the levels of strategic risks.

Back to top

International indirect tax compliance and outsourcing 

Dealing with Pan-European VAT compliance effectively is a real challenge for many clients with international reach. The European VAT model often leads to liability and extra costs for a business that has no base and therefore no resources or knowledge needed to meet the challenges of complying with local VAT law. From VAT returns and EC Sales Lists to statistical declarations such as Intrastat, the scope for error is considerable and penalties can be substantial. 

To assist our clients in dealing with the intricacies of indirect tax, our European Compliance Centre based in Brussels proposes the services of a multi-disciplinary team of 65 specialists (lawyers, economists, accountants, IT-specialist) drawn from all over Europe (15 nationalities mastering 18 languages), who are highly experienced in assisting companies with multi-jurisdiction VAT-compliance, dealing with the complexities of local regulations and procedures – such as communicating with local tax authorities, setting up new VAT registrations and filling Intrastat and EC Sales returns. 

All the work will be centralised from Deloitte’s European Compliance Centre and delivered at a fixed fee. Our professionals will team up with your VAT or finance group to achieve the best practice in review, submission, and management reporting.

Back to top

Transactional consulting for indirect tax 

Restructurings, mergers and acquisitions are often not part of the day-to-day operations of the in-house indirect tax experts. 

Our indirect tax experts are involved in these processes on a daily basis. We work together with Deloitte transactional specialists in financial advisory, consulting, and other tax specialisations to ensure the indirect tax advice is consistent. 

After the deal is closed, our experts go further and make sure that post merger integration occurs in a tax optimised way.

Back to top

Contacts

Rony Wuytjens
Partner
rwuytjens@deloitte.com