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 April 2016 only.
It is still time to assess the possible VAT costs and to take preventive actions, like for instance setting up a VAT group.
For any further information, please contact your local PwC adviser.