Budget 2012

Indirect tax measures

Last update: 19 April 2012 - 10:40 CET

Corporate tax measures | Individual tax measures | Other tax measures

Overview of indirect tax measures in the Budget 2012 agreement

Notary and bailiff fees subject to VAT 

Diensten van notarissen en deurwaarders onderworpen aan btw | Les services des notaires et huissiers de justice sont soumis à la TVA

In the Law of 28 December 2011 containing miscellaneous measures (Dutch | French) the submission to VAT is confirmed for bailiffs and notaries while lawyers continue to be VAT exempt for the time being. The VAT Administration also published a first guideline (Dutch | French) commenting on some topics on the application of the new regulation.

• VAT has to be applied to all fees charged by notaries and bailiffs for services rendered as of 1 January 2012; 
• Particular attention is required to determine the modalities where taxes and levies, which are often collected through notaries and bailiffs. The administrative guideline confirms that taxes and levies which are assessed on the parties but collected through the notary or bailiff are to be excluded from the taxable basis. Typical example is the real estate transfer tax (registration duties) which is collected by the notary. Hence, no VAT is due on the real estate tax recharged by the notary to the parties involved in a transaction.

This measure entered into force on 1 January 2012. This however entails a very short delay for registering and preparing these professions for VAT. Therefore, the administrative guideline provides for a transitional regime whereby no VAT is to be paid to the VAT authorities until May or July 2012.

The law of 28 December 2011 containing miscellaneous measures (Dutch | French) also changes the provision governing the revision of previously recovered VAT (so-called ‘VAT revision’). According to the Explanatory Memorandum, this change aims to extend the scope of the VAT revision rules to be implemented by Royal Decree and aims to cover the situation whereby the VAT position of a taxable person changes ‘due to the abolition of a VAT exemption’. Therefore, this provision clearly aims to cover the VAT revision in the hands of notaries and bailiffs. This measure is executed by the Royal Decree of 9 January 2012 (Dutch | French), introducing a new provision art. 21bis in the Royal Decree n° 3 of the VAT Code governing the recovery and revision of VAT. The new provision stipulates that any VAT to be revised due to the change of the VAT regime, cannot be claimed back but can only be off-set against the VAT payable on the realised turnover.

It is to be pointed out that an appeal has been lodged with the Constitutional Court to declare the new VAT regime for notaries null and void as it would infringe upon the Constitution.

Source: Law of 28 December 2011 containing miscellaneous measures (Dutch | French)

VAT rate digital TV 

btw-tarief voor digitale televisie | Taux de TVA pour la TV numérique

The VAT rate on digital TV increased from 12% to 21%, i.e. the same VAT rate as previously applicable for analogue TV. In previous years, this measure has already been announced several times within the framework of budget negotiations and has now become effective. This measure entered into force on 1 January 2012.

Source: Law of 28 December 2011 containing miscellaneous measures (Dutch | French)

Revision of VAT 

Herziening van de btw | Révision de la TVA

The law of 28 December 2011 containing miscellaneous measures (Dutch | French) also changes the provision related to the cases wherein a revision of VAT can be made. Aside from the change aimed to cover notaries and bailiffs (see above), the new provision also excludes a VAT revision when a person ‘becomes’ a taxable person. This change in the text is not explained in the Explanatory Memorandum, but probably aims to confirm in the legislation that a taxable person cannot recapture part of the VAT incurred the moment whereby he did not yet have the capacity of a VAT taxable person (e.g. a private person starting a business or a public authority starting activities subject to VAT).

Source: Law of 28 December 2011 containing miscellaneous measures (Dutch | French)

Reform of the VAT penalty system 

Hervorming van het btw-boetesysteem | Réforme du système d’amendes en TVA

Further to the 2012 budget control, the Government has agreed to review the VAT penalty system to increase its dissuasive character. The new regime would enter into force on 1 July 2012.

Inheritance tax 

Successierechten | Droits de succession

One of the Regions has requested the Minister of Finance to examine the feasibility of accelerating the delay for submitting inheritance tax returns. This would allow the Regions to realise a one shot extra revenue.

Excise duties tobacco 

Accijnzen op tabak | Droits d’accises sur le tabac

Budget 2012

The excise duties on tobacco increases. There is an increase of €0.3 per pack of cigarettes and €0.2 for rolling tobacco. In addition, the special excise tax for manufactured d tobacco is increased to €9.5/kg. The increases were applied from 1 January 2012.

Budget control 2012

The Government agreed to further increase the excise duties on rolled tobacco with 1.5  €/kg (to 11  €/kg). The excise duties on cigarettes will be increased with 0.13% and with €0.32 per 1,000 pieces. The delay for the payment of duties on tobacco will be shortened with 1 week in 2012. The Government also aims at a settlement with Luxembourg with respect to the common excise duties and entry duties.

Stock exchange tax 

Beurstaks | Taxe sur les opérations de bourse

Budget 2012

The Law of 28 December 2011 containing miscellaneous measures (Dutch | French) provides an increase of the stock exchange tax for transactions executed as of 1 January 2012 of 30%, leading to the following new rates: 

• 0.22% standard rate 
• 0.09% reduced rate 
• 0.65% rate for capitalisation unit trust. 

The maximum tax amounts per transaction is increased from €500 to €650 (standard) and from €750 to €975 (capitalisation anti trust) 

The validity and mechanism of the stock exchange tax will remain unchanged.

Source: Law of 28 December 2011 containing miscellaneous measures (Dutch | French)

Budget control 2012

The Government agreed to further increase the stock exchange tax for transactions executed in the period from 1 May 2012 until 31 December 2014: 

• the 0.22% rate will be increased to 0.25% 
• the 0.65% rate will be increased to 1% 

The 0.09% rate will remain unchanged. The maximum tax amounts per transactions will be increased from €650 to €740 (standard) and from €975 to €1,500 (capitalisation anti trust).

Bank levy 

Bankenheffing | Taxe bancaire

A measure that had to be decided in the budgetary discussions for 2012 was the revamping of the bank levy. This was initially not foreseen as a budget measure but aimed to provide a new legal basis for the existing bank levy after it was annulled by the constitutional court.

In the wake of the 2008 financial crisis, a bank levy was introduced by the Law of 15 October 2008. The bank levy serves to finance the deposit guarantee fund (“Bijzonder Beschermingsfonds voor Deposito’s en Levensverzekeringen”, “Fonds Spécial de Protection des Dépôts et des Assurances sur la Vie”), which provides a cover for those who hold deposits and policies of up to €100,000 since 2008. In reaction to the division of Dexia (Royal Decree dated 10 October 2011), the fund was recently extended to include a cover for the capital inlay in recognised cooperative companies. 

Under the bank levy legislation, all financial institutions participating in the deposit guarantee fund are liable for an annual contribution equal to 0.15% of the qualifying deposits amount held (at 30 September of the previous year) or 0.15% of the inventory reserve for life insurances. 

The bank levy’s mechanism was contested by several smaller Belgian banks because of the disproportionate effect it has on banks mainly financed through client deposits, as opposed to banks financed on the capital markets, which in practice, favors larger institutions. This discussion was brought before the Constitutional Court which, on 23 June 2011, decided that the bank levy discriminates against credit institutions which mainly source their financing through retail client deposits, as it does not take financial institutions’ risk profile into account in any way. Due to the incompatibility with the equality principle, the legislation which set the 0.15% tax rate on credit institutions was annulled by the Constitutional Court. However, the ruling’s entry into force is delayed until 31 December 2011. 

In order to secure financing for the deposit guarantee fund as of 2012, legislative action was required. 

The measures taken in the budget with respect to the bank levy consist of two separate levies.

Firstly, a new financial stability contribution is applied to all Belgian established banks, amounting to 3.5 base points (bps) on the total amount of liabilities minus equity and deposits subject to the guarantee scheme. This measure should raise €100 million for 2012 and is applicable in the same way to all banks. 

Secondly, the contribution to the Deposit Protection Fund which was already applicable in previous years was revamped and is fixed for 2012, in globo, at 24.5 bps on the total amount of deposits subject to the guarantee scheme. For 2013, the rate will be reduced again to 15 bps. At the level of the individual banks, the contribution is fixed based on a weighted ratio representing the risk profile of the bank and which takes into account capital adequacy, asset quality and liquidity. The precise calculation of this weighted ratio and the range applicable is not yet known. These adjustments to the individual contributions aim to meet the criticism of the Constitutional Court.

Source: Law of 28 December 2011 containing miscellaneous measures (Dutch | French)

Subscription tax on saving deposits 

Abonnementstaks op spaardeposito’s | La taxe sur les dépôts d'épargne

The 2012 budget control agreement provides for an increase of the 0.08% subscription tax on saving deposits. The increase will be function of the loan-to-deposit ratio of the banks. For 2012, the increase will be implemented by way of an exceptional levy on the deposits on 30 June 2012, so as to reach the budgeted revenue of €17 mio. This increase may be partially compensated by a decrease of the deposit contribution.

Nuclear contribution 

Nucleaire rente | Rente nucléaire

The nuclear contribution will bring €550 million to the Belgian State in 2012 (I.E. an increase of €300 million). This is the "windfall benefits" tax to be paid for the longer than foreseen exploitation of nuclear power plants in Belgium. As in previous years, the nuclear contribution will be levied directly from the different energy companies in proportion to their share of the nuclear power capacity in Belgium. A complaint from the nuclear producers with the constitutional court against this contribution has been denied in 2010.

Tax on conversion of bearer securities 

Belasting op de omzetting van effecten aan toonder | Taxe sur la conversion des titres au porteur

The conversion of bearer shares to dematerialised or registered securities in 2012 and 2013 triggers a tax. 

The taxable event is the conversion, i.e. the dematerialisation of bearer shares through deposit on a securities account with a financial institution or the registration with the issuing company as registered shares. Securities representing public sector debt (governed by the Law of 2 January 1991), with a maturity date prior to 1 January 2014, are not in scope.

The tax rate is 1% for conversions in 2012 and 2% for conversions in 2013. 

The taxable base for quoted securities is the most recent quoted value before the date of deposit on a securities account or with the issuer. For non-quoted securities, the taxable base is:

• the nominal value for bonds and other debt securities;
• the most recent inventory value for parts in investment institutions with a variable number of parts; 
• the book value on the date of deposit (excl. interest) for any other securities.

If the securities are in a foreign currency, conversion to the Euro must be done based on the exchange rate on the date of deposit.

The tax has to be withheld by the financial intermediary (for conversions in dematerialised securities) or the issuer (for conversions in registered securities).

Contacts

Piet Vandendriessche
Global Indirect Tax Leader
pvandendriessche@deloitte.com

Related info

	VAT cost on company cars
	Recent VAT rate changes in Europe
	European VAT Rates Applicable VAT rates as of 1 January 2012
	OECD (2011) Consumption Tax Trends 2010

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