BELGIUM: COVID-19 VAT IMPLICATIONS
BELGIUM – Update 28th August
Circular on temporary rate reduction for restaurant and catering
As announced by finances Belgium June 6, 2020, the reduced VAT rate of 6% temporarily applies to restaurant and catering services:
- from June 8, 2020 to December 31, 2020
- excluding the supply of beers with an actual alcoholic strength by volume exceeding 0.5% vol. and other beverages with an actual alcoholic strength by volume exceeding 1.2% vol.
You will find more information in circular 2020 / C / 86 of June 29, 2020.
Source Credit – finances.belgium.be
BELGIUM – Update 2nd July
Circular on temporary rate reduction for restaurant and catering
As announced by finances Belgium June 6, 2020, the reduced VAT rate of 6% temporarily applies to restaurant and catering services:
- from June 8, 2020 to December 31, 2020
- excluding the supply of beers with an actual alcoholic strength by volume exceeding 0.5% vol. and other beverages with an actual alcoholic strength by volume exceeding 1.2% vol.
You will find more information in circular 2020 / C / 86 of June 29, 2020.
Source Credit – finances.belgium.be
BELGIUM – Update 1st July
Circular 2020 / C / 86 on the temporarily reduced VAT rate of 6% for some restaurant and catering services
This circular comments on the temporary introduction of the VAT rate of 6% for certain restaurant and catering services as a measure aimed at contributing to the fastest possible economic recovery of the catering sector after the mandatory closure of catering establishments due to the pandemic of the virus COVID-19.
This tariff reduction was introduced by the Royal Decree of 08.06.2020 amending Royal Decree 20 of 20.07.1970 determining the rates of value added tax and classifying the goods and services with those rates by with regard to measures in support of the catering industry (BS of 12.06.2020).
B tw rate; restaurant and catering services; measure to assist the catering industry after the compulsory closure of establishments due to the pandemic of the virus COVID-19.
Actions for which the VAT rate is temporarily reduced to 6 %
The intended transactions, for which the applicable VAT rate is reduced to 6 % until 31.12.2020 , are not deliveries within the meaning of Article 10 of the VAT Code, but certain restaurant and catering services, as referred to in Article 18, § 1, second paragraph, 11 ° of the VAT Code. More specifically, it concerns :
- the provision of food in restaurants and cafes and, more generally, in conditions of on-site consumption. These are restaurant and catering services that are referred to in Section I of Table B of the Annex to Royal Decree No. 20 on VAT rates and were therefore previously subject to the rate of 12% ( temporary rate reduction now from 12% to 6 % )
- the provision of non-alcoholic drinks in restaurants and cafes and, more generally, in on-site consumption conditions. These are restaurant and catering services that are excluded from the 12% rate in section I of the aforementioned Table B and were therefore previously subject to the 21% rate ( temporary rate reduction now from 21% to 6% )
- the simultaneous provision, in the course of a single service, of both food and non-alcoholic drinks in restaurants and cafés and, more generally, in conditions for on-site consumption ( temporary tariff reduction now, as regards food, from 12% to 6% and as regards non-alcoholic drinks, from 21% to 6% ).
The provision of alcoholic beverages in restaurants and cafes and, more generally, in on-site consumption conditions is thus a restaurant or catering service which, as before, continues to be subject to the standard VAT rate of 21%, regardless of whether or not one of the three services referred to in the previous paragraph are also provided to the customer (services that then form part of the broader restaurant or catering service and which – in contrast to the alcoholic beverages provided simultaneously – are eligible for the rate reduction to 6%).
The nature or name of the establishment that provides the restaurant or catering services is not relevant. It may therefore include the following service providers and sites:
- fast food and self-service restaurants
- restaurants in theaters (clubs …), musea en winkelcentra
- canteens and company knives
- hotels or guest rooms with half or full board
- cafeterias , bars, inns, tea rooms and discotheques
- foodtrucks , snackbarauto’s
- caterers , bakeries with consumption salons
- temporary stands for sale or consumption during a festival, at a market, a fair.
This includes restaurant and catering services provided by specialist caterers or by the operators of the above establishments.
Source Credit – Fisconet
BELGIUM – Update 25th June
Approval of the VAT rate reduction from 21% to 6% for the Horeca sector until December 31st 2020
Source Credit – jbfiscalconsulting.com
BELGIUM – Update 17th June
Covid-19: Extended payment terms for import VAT
Payment and filing deadline extended from 1 to 4 weeks for import VAT.
Due to the coronavirus outbreak, the General Administration of Customs and Excise (AAD & A) has taken the following support measures for both credit account holders and those who do not have them. These measures are currently only granted for the following debts:
- the excise duties and the packaging levy for alcohol and alcoholic or non-alcoholic drinks and VAT.
AAD & A will not claim any default interest for these rights during the period of application of these measures.
The debts not mentioned above (for example, the import duties) are, to date, not the subject of any measure. They must therefore be paid within the prescribed periods.
Excise duties and packaging levy on alcohol and on alcoholic or non-alcoholic drinks
HOLDERS OF A CREDIT ACCOUNT
Since 21/03/2020, PLDA has been adjusted to automatically change the payment term from 1 week to 4 weeks. This measure is valid for both ‘customs’ and AC4 declarations.
NON-HOLDERS OF A CREDIT ACCOUNT
The date of submission of the declarations AC4 (time of submission and payment of the declaration in PLDA), foreseen on the Thursday of the week following the putting into service, may be moved to the Thursday of the 4th week. The temporarily registered recipients are not involved in these measures. This measure applies to declarations submitted from 21/03/2020.
VAT HOLDERS OF A CREDIT ACCOUNT
Since 21/03/2020, PLDA has been adjusted to automatically change the payment term from 1 week to 4 weeks.
Special provisions for holders of a credit account If the balance of the deposit is insucient, the operators can send an email ( da.accounting.revenues@minn.fed.be) contact the ‘Accounting’ department to obtain a ctitious increase in their deposit. These measures are applicable until December 31, 2020.
For credit account holders, all returns led in PLDA before January 1, 2021 will automatically benet from the extension of the payment term. For non-holders of a credit account, any entry into service before 1 January 2021 will automatically benet from the measure extending the submission and payment deadlines for returns.
Source Credit – financien.belgium
BELGIUM – Update 16th June
Donations of medical devices to medical facilities are VAT exempt between March 1 till Sept 1, 2020
Formalities needed:
§ 2 In the case of a transfer … , the taxpayer shall draw up a document for each donation, containing the following information:
1° the date on which the beneficiary took possession of the goods;
2° the name or corporate name, address and VAT identification number of the taxpayer;
3° the name or corporate name, address and company number of the beneficiary;
4° an accurate and complete description and the quantity of the goods supplied;
5° a declaration by the beneficiary in which he undertakes to do so:
a) to earmark the goods received for educational purposes; or
b) to make them available free of charge to another school established in Belgium.
Source Credit – ejustice.just,fgov.be
BELGIUM – Update 15th June
VAT advance payment in December is suspended
Companies with VAT registration in Belgium need to prepay VAT on transaction in the month of December still in the same month. This amount can then be offset with the VAT return and payment over December which is due on Jan 20. This prepayment has now been suspended.
Source Credit -Tijd.be
BELGIUM – Update 10th June
No longer extension of VAT deadlines
Because of the corona crisis the Belgian tax authorities granted several deferrals for the VAT obligations (return, intracommunity sales listing, annual sales listing, payment of VAT).
The government has announced that as of the transactions of May 2020, no deferrals will be granted.
This means that at latest 20th June 2020:
- the VAT return for the transactions of May 2020 must be filed;
- the intracommunity sales listing for the transactions of May 2020 must be filed;
- the payment of the VAT resulting from the transactions of May 2020 must be paid.
Taxpayers filing monthly VAT returns that are allowed to get monthly VAT-refunds (starters and permit holders), need to file their VAT return for May 2020 also at latest 20th June 2020, if not the reimbursement of the VAT credit will be delayed.
Taxpayers that have terminated their VAT activities after 30th April 2020 need to file their last annual sales listing within three months counting from the date the VAT-activities were terminated.
Source Credit – VATsquare
BELGIUM – Update 8th June
Super core reduces VAT for catering to 6%
A VAT reduction for the catering industry and a tax-free consumption check of 300 euros. These are two of the most striking measures of the extra corona package that the ‘super core’ announced on Saturday.
Source Credit – Tijd.be
BELGIUM – Update 25th May
VAT rate on catering, restaurant and cafe services to be reduced to 6%
Belgium is to announce a curing of the VAT rate on catering, restaurant and cafe services to the reduced rate of 6%. This follows the recent German example.
Source Credit – Richard Asquith – (Avalara)
BELGIUM – Update 12th May
Circular 2020/C 65 on the temporarily reduced VAT rate for mouth masks and hydroalcoholic gels
Source Credit – Fisconet
BELGIUM – Update 11th May
Belgium Reduces VAT Rate on Masks and Hydroalcoholic Gels for COVID-19
The Belgian Ministry of Finance has issued a release announcing that the VAT rate on masks and hydroalcoholic gels is reduced to 6% in order to promote the supply of all goods necessary to comply with preventive measures in the fight against the COVID-19 pandemic. The reduction is provided via a Royal Decree that was approved on 2 May 2020 and applies from 4 May to 31 December 2020.
Source Credit – Orbitax
BELGIUM – Update 5th May
6% VAT ON DELIVERY, INTRA-COMMUNITY ACQUISITION AND IMPORT OF PROTECTIVE EQUIPMENT FROM MAY 4 TO DECEMBER 31, 2020
To promote the offer for everyone of goods that are necessary for compliance with the preventive measures in the fight against the COVID-19 pandemic , the Council of Ministers decided on May 2 to approve a royal decree amending the royal decree. No 20 of 20 July 1970 fixing the VAT rates. This royal decree will enter into force on Monday 4 May 2020, but will only be published in the Belgian Official Gazette during the week.
The FPS Finance already wants to inform all parties involved that temporarily, from 4 May 2020 to 31 December 2020, the supply, intra-Community acquisition and import of the following protective equipment are subject to the reduced VAT rate of 6% :
- Mouth masks, envisaged by codes NC 4818 90 10 00, 4818 90 90 00, 6307 90 98 10, 6307 90 98 91, 6307 90 98 99 and 9020 00 00 10.
- The hydroalcoholic gels.
Source Credit – financien.belgium
BELGIUM – Update 29th April
Q&A on Indirect tax filing and payment reliefs
Are there any filing extensions granted for VAT or Intrastat returns?
An automatic filing extension is granted for the periodical VAT returns, European Sales Listings and Annual Sales Listing. There is no need to request for these extensions.
| Periodical VAT returns | Submission deadlines (extended) |
| Monthly return February 2020 | Until 6 April 2020 |
| Monthly return March 2020 | Until 7 May 2020 |
| Monthly return April 2020 | Until 5 June 2020 |
| Quarterly return Q1 2020 | Until 7 May 2020 |
If a taxpayer qualifies as a ‘starter’ or has a monthly refund license, the maximum extension to maintain the benefit from a monthly refund is until the 24th of the month following the return period.
| European Sales Listing (ESL) | |
| ESL February 2020 | Until 6 April 2020 |
| ESL March 2020 | Until 7 May 2020 |
| ESL April 2020 | Until 5 June 2020 |
| ESL Q1 2020 | Until 7 May 2020 |
| Annual Sales Listing (ASL) | |
| ASL 2019 | Until 30 April 2020 |
If the activity of the company has been terminated, the ASL must be submitted no later than the end of the fourth month after the end of the activities
For Intrastat returns, no filing extensions have been granted. Companies facing difficulties to meet the due dates, are recommended to inform the Intrastat authorities (companies’ NBB contact) accordingly and upfront.
Can I delay the payment of the VAT amounts due by the company?
An automatic extension of two months is granted for the VAT payments resulting from the February, March and Q1 VAT returns.
| VAT payments related to | Payment deadlines (extended) |
| Monthly return February 2020 | Until 20 May 2020 |
| Monthly return March 2020 | Until 20 June 2020 |
| Monthly return April 2020 | Until 20 July 2020 |
| Quarterly return Q1 2020 | Until 20 June 2020 |
For the payment of VAT that has become due for VAT returns of the January 2020 or earlier taxable periods, taxpayers can request deferral of payment. they are not granted automatically (see below).
What if the above payment extension(s) would not suffice?
All natural or legal persons in possession of an enterprise number and able to demonstrate that they are negatively affected by the COVID-19 outbreak can request payment deferral. Affected persons can request aid in the form of a payment plan, exemption from late payment interest and a remission of fines for non-payment.
Requests need to be filed by 30 June 2020 at the latest.
Source Credit – Deloitte
BELGIUM – Update 23rd April
Belgium Issues Release on VAT Return Deadlines and Refunds for March 2020
The Belgian Ministry of Finance has issued a release on VAT refunds for the month of March 2020. The release notes that although the deadline for VAT returns has been extended to 7 May 2020, returns must be filed by 3 May 2020 in order to claim a refund.
Note, Belgium extended the standard VAT return deadline from 20 April to 7 May due to COVID-19.
Source Credit – Orbitax
BELGIUM – Update 21st April
March 2020 return to be filed before May 3, 2020 to get your refund within the normal period
Unofficial translation
The filing of the VAT returns for the month of March 2020 was postponed until 7 May 2020. However, if you are entitled to a refund for a credit from the declaration for the month of March 2020, you must submit your declaration no later than 3 May 2020.
This refund can then be made within the normal period.Nothing will change for the quarterly applicants: if submitted on 7 May 2020 at the latest, the refund of the VAT credit will be guaranteed within the normal period.
Source Credit – financien.belgium
BELGIUM – Update 17th April
Tax Authorities announced the deadlines for submitting VAT returns and for EC Sales Lists are altered as follows:
- VAT return for February postponed to 6 April 2020
- VAT return for March postponed to 7 May 2020
- First Quarter 2020 postponed to 7 May 2020
- If there is a requirement to submit an annual sales listing, it has been deferred to 30 April 2020. Paying VAT for these periods is also delayed as follows:
- VAT return for February postponed to 20 May 2020
- VAT return for March postponed to 20 June 2020
- First Quarter 2020 postponed to 20 June 2020
If payment is made by the revised due date, there will be no penalties or interest imposed.
Source Credit – Accordance VAT
BELGIUM – Update 16th April
April VAT returns payment deadlines are to be extended to 15 July 2020
April VAT returns payment deadlines are to be extended to 15 July 2020. The regular deadline is 15 April. Businesses may apply for additional time, and a payment plan, if they can show difficulties related to the COVID-19 crisis. February and March deadlines have already been postponed (see below).
| Return | Due date | Revised |
| Feb 2020 VAT return monthly | 20-Mar | 06-Apr |
| Payment | 20-Mar | 20-May |
| Intrastat & EC Sales listing | 20-Mar | 06-Apr |
| Mar 2020 VAT return monthly | 20-Apr | 07-May |
| Payment | 20-Apr | 20-Jun |
| Intrastat & EC Sales listing | 20-Apr | 06-May |
| Quarter 1 2020 VAT return | 20-Apr | 07-May |
| Payment | 20-Apr | 20-Jun |
| Intrastat & EC Sales listing | 20-Apr | 07-May |
Source Credit – Richard Asquith (Avalara)
BELGIUM – Update 15th April
Additional delay for payment of VAT
Deputy Prime Minister and Minister of Finance Alexander De Croo has instructed the FPS Finance to grant an additional extension for the payment of withholding tax and VAT for the month of April. This additional postponement is added to the postponement for the month of March, which has already created a liquidity buffer of 4.5 billion euros for self-employed persons and companies.
Alexander De Croo: Many Belgian companies have been hard hit by the fight against the corona virus. In March we had already decided to grant an additional payment extension for withholding tax and VAT. Given that the strict measures continue in April, I have decided to grant an extra extension for April. Specifically: the payment terms for VAT and withholding tax are extended by 2 months . Postponement of payment means that you can pay later and that the tax authorities collect no interest on late payments and no fines. If this additional postponement is not sufficient, companies can agree on additional payment modalities with the FPS Finance, such as a payment plan and request the non-application of default interest.
The payment deadlines are:
- for withholding tax: July 15, 2020
- for VAT: July 20, 2020
Source Credit – Alexander Decroo
BELGIUM – Update 14th April
Tax administration adjusts a number of flat rate schemes for the first quarter
For some flat-rate schemes, the tax authorities accept that the VAT-liable person draws up a one-time inventory (per merchandise group) of the goods that were not sold and destroyed as a result of the corona crisis before the first quarter of 2020. This inventory must state the following statements per merchandise category:
- number and date of the invoice;
- the nature of perishable goods;
- the quantity and purchase price of the unsold and destroyed perishable goods.
The values included in that inventory per merchandise category can be deducted from the values per merchandise group to which the fixed coefficients are usually applied for the first quarter of 2020. The tax authorities will provide additional information on how the burden of proof of the content will be dealt with of that inventory.
Source Credit – BTW lijn
BELGIUM – Update 26th March(2)
Extended filing deadlines:
- VAT returns
- February monthly return extended to 6th April 2020
- March monthly return and Q1 quarterly return: extended to 7th May 2020
- European Sales Listing
- February listing extended to 6th April 2020
- March and Q1 quarterly listings extended to 7th May 2020
- Annual Sales Listing
- Extended to 30th April 2020
- Automatic 2 month extension for –
- February monthly return extended to 20th May 2020
- March monthly return and Q1 quarterly return extended to 20th June 2020
BELGIUM – Update 25th March (1)
Monthly tax period extensions :
- Return payment deadlines for February 2020 period (usually due 20th March)
- Return deadline is extended to 6th April 2020
- Payment deadline is extended to 20th May 2020
Quarterly tax period extensions :
- Return and payment deadlines for January to March 2020 period (usually due 20th April)
- Return deadline extended to 7th May 2020
- Payment deadline extended to 20th June 2020
- In addition to the deadline extensions for returns and statements, an automatic two-month extension has been provided for VAT payment, without penalties.
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