Court of Appeal: VAT reverse charge – Penalties

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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 for the company that had to apply the VAT reverse charge.

For more information, please do not hesitate to contact your local PwC adviser.

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