Belgium to abolish the cost-sharing VAT exemption for Financial Services
Belgium will abolish the VAT exemption for cost-sharing associations (independent groups of persons) in the financial sector (banking – insurance). A draft law has been approved. This position follows the judgments of the CJEU cases DNB Banka (C-326/15) and Aviva (C-605/15) of 21 September 2017. The benefit of the exemption will be abolished as of
VAT group : VAT on services provided by head-office to fixed establishment / branch
The CJEU confirmed the application of the reverse-Skandia principle: a branch is a separate VAT taxable person from its head-office when the head-office is a member of a VAT group in another EU Member State (CJEU, C-812/19, 11 March 2021). This approach was already applied in Belgium. However, some EU Member States were not recognizing
VAT due on Aladdin services, BlackRock VAT case released – A new challenge for fund asset managers!
The VAT exemption applicable to the management of Special Investment Funds (Article 135(1)(g) of the VAT Directive) raises several issues. Those issues are related to both the concept of “management” and the “type” of funds that benefit from the exemption. The VAT Committee responded to some questions in 2017 but these concepts are certainly not
First administrative comments on VAT on rent published!
The VAT administration published today the first commentary (Frequently Asked Questions) on the letting with VAT that came into force on 1 January 2019. For buildings that are under construction, already marketed and eligible for the optional VAT regime, it is essential to monitor the practical issues. The key points addressed in the FAQ’s are
Optional VAT rental – condition for VAT deduction
In a communication published on 9 January 2019, the administration laid down certain conditions concerning the deduction of VAT which could not be deducted before the entry into force of the law. In practical terms, this is the VAT due on the costs of architects, studies, demolition, stabilisation and construction incurred before the entry into
Option to apply VAT on rent: adopted!
The Belgian Parliament has approved last week the new law allowing to opt for VAT on professional rent. Two important dates: The new rules are applicable as from 1st January 2019 Option is possible if the construction of the building started as from 1st October The VAT administration will publish detailed comments, a.o. on the
Update: VAT and immovable rent – as from 1/1/19
The final draft Law has been submitted to the Chamber of representatives on 31 July 2018. With entry into force foreseen for 1 January 2019, it is time for action. Check out our update (in Dutch and French) below. Update: btw en onroerende verhuur – nieuw vanaf 1/1/19 Het wetsontwerp is op 31 juli
”New” Royal Decree nr. 57 – Important change!
Today, in case of a service of transport of goods where a portion of the transport takes place outside the EU, said portion is outside scope of EU VAT in function of the distances covered. In order to eliminate the difficulties arising from the calculation of that portion, the new RD 57 specifies that only
