Court of Appeal: VAT reverse charge – Penalties
A recent court case of the Brussels Court of Appeal again shows how expensive it can be for businesses not to apply the reverse charge and thereby not self-account for the VAT due on incoming invoices. Indeed, the Court ruled that proportional penalties are applicable even in the case where the VAT was fully deductible
VAT : Opening right to deduct VAT for free supplies
The Belgian VAT Administration recently published a new administrative decision allowing a full VAT deduction for the provision for free of a kitchen infrastructure and some related periodical costs to a caterer provided that the caterer does not use the free infrastructure for supplies of goods and services to another person from whom he received the
Court of Appeal ruling on travel services provision may affect your VAT position
The Brussels Court of Appeal recently ruled that non-travel agent businesses may be classified as travel agents for VAT purposes if a substantial part of the services they perform relate to travel and accomodation. This classification as a travel agent would mean that the input VAT related to the travel agency activities would not in principle be deductible. Companies should therefore assess
Real Estate – VAT : Administration denounces artificial split of transactions in important renovation projects – application of 6% reduced VAT rate and more at stake !
For years, certain promotors have been marketing reconstruction or heavy renovation projects at a 6% reduced VAT rate. With its decision of 13 May 2014, VAT administration now clearly denounces legal constructions that have been devised with the [sole] purpose of attaining a reduced VAT rate and which consist in the artificial split of a
Major change in customs duties as of 1 January 2014
In the course of the past months, we had the opportunity to draw your attention to a major change to customs duties applicable in the EU as from 1 January 2014. Today, (three weeks from the deadline) we once again want to stress the potential impact of this modification on the customs duties your company
Increase in excise duties on wine, spirits and tobacco and abolition of environmental tax
Further to the budget discussions of the Belgian government, for the year 2013, the Belgian government plans to implement the following measures : Excise duties on ethyl alcohol, all alcoholic drinks (except for beer), and smoking tobacco will increase by approximately 12 %. In terms of alcohol, the special excise duty increases as from 1 January
