VAT on directors fees – new detailed guidelines
In a previous newsflash, we informed you that a company acting as a director (or a liquidator etc.) will no longer be able to invoice its director fees outside the scope of VAT. The entry into force of this decision has been repeatedly delayed. On 30 March 2016, the Belgian VAT Administration published comprehensive guidelines on
Have you considered the VAT impact when dealing with Transactions?
In today’s tax world, considering VAT in a timely manner is key to limiting the negative impact it can have on your transaction budget. VAT on transactions can lead to either VAT savings or a VAT burden depending on various factors. Recent developments in EUCJ case law that allows VAT deduction for active management holding
VAT on directors’ fees: application as from 1 April instead of 1 January 2016
The Belgian VAT authorities have decided to abolish the tolerance for companies acting as directors to carry out their services without charging VAT. In practice this means that a company will not be able to charge directors’ fees without charging VAT. It has now been announced that the tolerance will be abolished as from 1
Sveda case: Can a Baltic mythology park trigger an important EUCJ judgment on VAT deduction ?
The EUCJ is sometimes taking key positions in an improbable context. This is such a case ! The VAT deduction on the construction of a Baltic mythology recreational park has been rejected, as the park is only having limited VAT taxable output linked to its souvenir shop, but the access to the park, whose construction was 90%
New administrative VAT decision: Travel package and insurance services – Impact for Belgian lease industry
The Belgian VAT authorities have published a new administrative decision clarifying the VAT treatment of offerings by travel agencies consisting of both travel services and insurance services, based on the ‘old’ CJEU case BGZ Leasing of 2011 (C-224/11). These guidelines adjust the initial viewpoint of the Belgian VAT authorities to the CJEU case BGZ Leasing
Belgian Court of Appeal: substance is also key for VAT
In the case at hand, the Belgian Court of Appeal ruled that a Luxembourg transportation company had an establishment in Belgium for VAT purposes as the company was mostly operating from Belgium and had limited substance in Luxembourg. Consequently, the Luxembourg company had to apply Belgian VAT on its operations. This judgment is in line
VAT: for B2B situations the former tax point rules will be reinstated for advance invoicing!
Upon proposal of the Finance Cabinet, the Council of Ministers has approved a draft bill that reinstates the issuance of an advance invoice in B2B situations; this causes the VAT to become due in the hands of the supplier, allowing at the same time input VAT deduction in the hands of the business customer. The new
Skandia case: upcoming law formally confirms position of Belgian VAT authorities
Belgium has taken steps to respond to the outcome of the Skandia America Corp court case (C-7/13 of 17 September 2014). Indeed, the Belgian cabinet council has recently approved a draft proposal of law of the Belgian Minister of Finance (Johan Van Overtveldt), whereby all international transactions between a head office and a branch are subject
