For foreign carriers transporting persons in Belgium, the administration introduced a new regime as of 1 January 2014 (decision no. E.T. 122.611 of 20 February 2014). Unless a reverse charge or exemption from Belgian VAT can be applied, under this new special regime, foreign transporters who are liable to pay Belgian VAT on the passenger transport they carry out in Belgium are required to register for VAT in Belgium and submit the specific VAT return on remunerated passenger transport.
With the introduction of the OSS scheme, both intra- and extra-EU VAT taxpayers who are not established in Belgium will be able to report and pay the Belgian VAT they owe on their services to EU-based non-taxable customers through the OSS scheme declaration since 1 July 2021.
The tax authorities have therefore decided to abolish the aforementioned special scheme with specific VAT declaration for salaried persons from 30 June 2023. Carriers not established in Belgium who have to pay Belgian VAT on the passenger transport they carry out in Belgium for customers not subject to VAT will therefore from then on only be able to opt for the OSS scheme or the ordinary VAT registration with periodic VAT declarations.
The circular does not deal with passenger transport carried out in Belgium for a Belgian VAT-taxable customer who does not submit periodic VAT returns, a foreign VAT-taxable person without a liable representative in Belgium or a non-VAT-taxable person established outside the EU. In these cases, the OSS scheme may in principle not be used to report and pay Belgian VAT on passenger transport carried out in Belgium, and the non-resident service provider could therefore only opt for ordinary VAT registration with periodic VAT returns. It is not clear whether the tax authorities would still allow the use of the OSS scheme in such cases.
