Tax exemption on registration of foreign company cars: VAT certificate no longer required


In principle all cars that are used on public roads in Belgium have to be registered in Belgium, including company cars provided by foreign employers.

However, depending on the factual circumstances, specific exceptions may be available. If, for example, certain conditions are met, no registration is required for Belgian employees who drive, on Belgian public roads, a company car (with a foreign licence plate) provided by their foreign employer. Up to 30 September 2014, a specific VAT certificate had to be requested in order to benefit from the exemption.

Based on a Royal Decree that was recently published, a VAT certificate is no longer required from 1 October 2014. This is in line with a decision rendered by the Belgian Supreme Court on 25 September 2009. In order to qualify for the exemption, certain documents have to be kept in the vehicle.