Article 41, § 1, 3° of the Belgian VAT code implements a VAT exemption for services directly connected with the export of goods from Belgium or another EU member State to a place outside the EU VAT territory.
On 29 June 2017 the European Court of Justice ruled (C-288/16) that this VAT exemption could not apply where transport services are not provided directly to the consignor or the consignee of those goods.
As from 1 January 2022 the Belgian VAT authorities will align with this point of view and as a result the exemption foreseen in article 41, § 1, 1ste lid, 3° Belgian VAT code will no longer apply on a transport service provided by a subcontractor.
As a small but ambitious company in the niche sector of specialty chemicals, Eurikas is looking for quality customs and VAT advice at a fair price. Founder Peter Roggeman and his team have been calling on the expertise of Customs Square and Vatsquare for several years now. And he is very satisfied with this.
Can you briefly outline the history and activities of Eurikas?
Peter Roggeman: “After a career of over 20 years at the American company Michelman, where I was commercial director and managing director Europe, I started Eurikas in 2013. I did so together with a New Zealand partner with extensive international experience. Like Michelman, we operate in the niche sector of specialty chemicals, manufacturing products for a wider range of sectors: inks and coatings, asphalt, packaging, textiles, agriculture,…”
“Despite our small team with only 6 employees, we are active around the world, focusing on Europe, the United States, Brazil and Japan. We purchase a lot of material outside of Europe, mainly in the US, Japan and South Korea.”
In terms of approach, what differentiates you from direct competitors?
“We are an asset-light model, which means we have no assets and develop our own products. To do this, we work with an American partner who develops the formulations, then we have them produced in Europe by three other partners. Working with external, freelance parties – including agents – gives us the opportunity to adapt very quickly to changing market conditions and customer demands. That agility is one of our great strengths.”
How and since when did your collaboration with the specialists from Customs Square and Vatsquare start?
“Because of our international activities, we have four VAT numbers – Belgium, the Netherlands, Switzerland and the United Kingdom – and are regularly confronted with tricky VAT issues. Because of the complex and rapidly changing VAT legislation, a few years ago our external auditor advised us to use Vatsquare for VAT support. That cooperation – with VAT expert Steven Didden as our central contact – is running very smoothly. Steven always helps us tremendously and succeeds in explaining the complex VAT rules in understandable language.
A few years ago I was also looking for a professional consultancy firm to deal with customs matters. When I met Linda Fierens from Customs Square two years ago during an afternoon of studies by her Vatsquare colleagues, we immediately clicked. That’s why we decided to start working together to keep our customs files on track.”
How is the collaboration with Customs Square going?
“Just like with Vatsquare, the collaboration with Customs Square is going very well. Linda combines a no-nonsense and direct approach with enormous experience in the area of customs-related issues. Thanks to her career at the FPS Finance and Geodis, among others, she not only has an enormous professional network, but she also knows all the ins and outs of specific customs topics. Moreover, she is always available, which is an important added value for our flexible team.
We wanted to submit a request for suspension of customs duties for a specific case. Together with her team, Linda succeeded admirably in handling this file successfully. As a result, we will be able to realize additional margin as of January 2022. For us this is once again proof that investing in a professional consultancy firm more than pays off!
Besides this case, Linda also expertly assisted us during meetings with our freight forwarders from Asia, because there were some questions about our invoicing. Here, too, her advice was more than helpful in addressing these conversations in a constructive manner.”
How do you see the collaboration with Vatsquare and Customs Square evolving in the future?
“Because both VAT and customs rules are constantly changing and becoming more complex, it is impossible for a non-specialist to continue to see the forest for the trees. The synergy between Vatsquare and Customs Square is an absolute strength of this tandem. With our Eurikas team, it is very reassuring to be able to call on experts who are always ready to help us and who closely follow the regulations. And last but not least, my colleagues and I regularly learn something about (new) VAT and customs topics, which puts us in a stronger position when negotiating with suppliers or customers.”
More info: www.eurikas.be
Until 30 September 2021, a reduced VAT rate of 6% will apply on restaurant and catering services in Belgium. The measure will take effect as soon as the restaurant and pubs may open again.
Not only the food and non-alcoholic beverages, but also the alcoholic beverages, will benefit the VAT reduction.
Because of the coronacrisis the Belgian tax authorities granted several deferrals for the VAT obligations (return, intracommunity sales listing, annual sales listing, payment of VAT).
The government has announced that as of the transactions of May 2020, no deferrals will be granted.
This means that at latest 20th June 2020:
the VAT return for the transactions of May 2020 must be filed;
the intracommunity sales listing for the transactions of May 2020 must be filed;
the payment of the VAT resulting from the transactions of May 2020 must be paid.
Taxpayers filing monthly VAT returns that are allowed to get monthly VAT-refunds (starters and permit holders), need to file their VAT return for May 2020 also at latest 20th June 2020, if not the reimbursement of the VAT credit will be delayed.
Taxpayers that have terminated their VAT activities after 30th April 2020 need to file their last annual sales listing within three months counting from the date the VAT-activivities were terminated.
When VAT taxpayers regularly import goods from outside the EU in Belgium, they can request a permit (ET 14.000) allowing them to defer the payment of import VAT to their Belgian monthly or quarterly VAT return. In that same return they can report the deductible VAT. So if the import VAT is fully deductible, this permit eliminates the pre-financing of the import VAT.
Due to the current situation with the spread of COVID 19, the Belgian VAT authorities have decided that all forms relating to this permit ET 14.000 (e.g. application and termination) have to be mailed on the following address: et14000@minfin.fed.beFOD Finance, news 24 March 2020
Due to the problems from the spreading of the coronavirus, the Belgian tax authorities have foreseen that taxpayers can request the following VAT measures:
payment facilities;
waiver of late payment interest;
waiver of penalties for non or late payment of VAT.
Today the tax authorities announced the following additional VAT measures regarding the basic VAT obligations.
Periodical VAT return and intracommunity sales listing
return/listing of February 2020, filing by 20th March 2020: extended until 6th April 2020;
return/listing of March 2020, filing by 20th April 2020: extended until 7th May 2020;
return/listing of first quarter 2020, filing by 20th April 2020: extended until 7th May 2020.
Monthly refund of VAT credit
Starters or permit holders for a monthly payment of VAT credits that want their VAT credit refunded on a monthly basis need to file their periodical VAT return at latest the 24th day (instead of the 20th) of the month following the tax period (e.g. VAT return of February 2020 needs to be filed at latest 24th March 2020).
VAT payment
The tax authorities grant an automatic delay of the deadline for VAT payments of two months (no penalties or late payment interest due).
VAT return of February 2020, to be paid by the 20th March 2020: extended until 20th May 2020;
VAT return of March 2020, to be paid by the 20th April 2020: extended until 20th June 2020;
VAT return of first quarter 2020, to be paid by the 20th April 2020: extended until 20th June 2020.
Annual sales listing of taxable customers
The annual sales listing for supplies to Belgian VAT registered customers in 2019 needs to be filed at latest 30th April 2020 (instead of 30th March 2020);
For taxpayers that seize their VAT activities this sales listing needs to be filed at latest at the end of the fourth month following the month in which the VAT activities were seized.
From 2020, additional statistical reporting obligations apply to members of a large VAT Group (which is being defined as a company with an annual turnover of at least 15 million EUR reported in VAT returns).
A breakdown of information contained in the VAT Group’s VAT return will have to be reported at legal entity level to the National Bank of Belgium (NBB) to allow more accurate statistical accounts (Royal Decree of 11 December 2019).
The first declaration through Onegate, the NBB’s electronic portal, is due by April 20th 2020 for first quarter figures.
What information has to be reported?
Each member of a Belgian VAT Group with an annual turnover of at least 15 million EUR will have to provide the NBB with a quarterly summary of certain figures reported on its behalf in the group’s VAT return:
for outgoing transactions: all VAT return data for box 00 until box 49, per box
for incoming transactions: the figures reported in boxes 81, 82 and 83 of the VAT return, per box
Practical implementation
The information needs to be reported on a quarterly basis, from the first quarter of 2020, and subsequently the 20th day following each quarter at the latest.
The VAT group representative can file the information on behalf of Members (optional). However, each individual member remains responsible for the reporting.
Please note that:
this new reporting obligation applies in addition to the VAT reporting obligations that should be performed by the representative member (VAT return at group level) or the individual members (European sales listing, annual client listing);
statistical reporting is often already required from VAT Groups, whereby a breakdown per member of the VAT return details should be provided. However, this has so far only been upon individual request from the NBB and on an annual basis, rather than a general obligation. In addition, previous reporting requests focused purely on cross border incoming and outgoing transactions, whereas the information to be reported as of 2020 has a different scope, which is broader for outgoing transactions but provides less detail on incoming transactions.
