BELGIUM: COVID-19 VAT IMPLICATIONS

Apr 1, 2020 | VAT Updates

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% : 

  1. 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.
  2. 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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