VAT Registration in Belgium
In Belgium, businesses that carry out taxable activities are required to register for VAT purposes with the Belgian tax authorities. This includes businesses that provide goods or services subject to VAT in Belgium, as well as those that import goods from outside the European Union into Belgium.
Read below all about VAT registration requirements for Belgium in our comprehensive guide.
Register for VAT in Belgium
Foreign individuals or businesses are typically not able to register for VAT in Belgium unless they are required to pay Belgian VAT on their taxable transactions.
However, some foreign taxable persons may be permitted to register for VAT in order to simplify the process of claiming back VAT on their purchases under the following conditions:
- Foreign entities that operate outside of Belgium and provide services related to Belgian immovable properties such as construction, maintenance, or cleaning work are eligible to register for VAT in Belgium.
- Foreign businesses established in another EU Member State, who conduct transactions that are subject to Belgian VAT under the reverse charge mechanism and have a regular right to claim back more than 10,000 euros per year in Belgian VAT, may be eligible to register for VAT in Belgium.
Exemptions from Registration
In Belgium, the following persons are not eligible for a BE VAT identification number:
- Taxable persons who engage exclusively in exempt activities listed in Article 44 of the VAT Code.
- Financial and non-profit institutions such as Hospitals, banks and insurance companies
- Coincidental taxable persons.
Selling in Belgium?
Registration in Belgium
The following activities do not grant recovery of input VAT under Article 44 include:
- Health-related services offered by medical facilities and institutions that provide medical care and treatment to patients.
- Renting or leasing real estate, except in cases where the rental or leasing agreement meets certain conditions for taxable leases.
- The sale or transfer of land that is intended for the construction of buildings or structures.
- The sale or transfer of buildings that have been occupied for more than two years after their initial occupancy and are therefore no longer classified as new for VAT purposes.
- Most activities involve the deposit or credit of funds in financial institutions.
- Coincidental taxable persons are, generally, individuals or businesses that do not have a regular economic activity subject to VAT but carry out occasional transactions that are taxable under VAT regulations.
Group and Divisional Registration
Group Registration
In Belgium, it is possible for legally independent persons who are closely connected financially, economically, and organizationally to form a “VAT group” (known as “btw-eenheid” or “l’unité TVA”) and be treated as a single taxable person for VAT purposes. The formation of a VAT group is voluntary and not mandatory, and it requires a request to be submitted to the VAT Administration. If the group meets all the requirements outlined in Royal Decree No. 55, the VAT Administration must grant group registration.
Divisional Registration
A division of a Belgian taxable entity that is not considered a distinct legal entity cannot apply for VAT registration and submit VAT returns independently.
Established Entities
Regardless of turnover, established entities that engage in taxable economic activities are required to register for VAT with the Belgian tax authorities. However, if the taxable person’s annual sales do not exceed the Small Enterprise Threshold, it can choose the small business exemption regime, under which it does not charge or reclaim VAT.
Foreign Entities
In Belgium, foreign taxable persons are generally not allowed to register for VAT purposes if they are not required to pay Belgian VAT on the taxable transactions they conduct in the country. Therefore, if a foreign company does not have a taxable presence in Belgium, they cannot register for VAT purposes and are not required to collect or pay Belgian VAT.
Foreign taxable persons must register if they carry out the activities described above if:
- These activities are VAT-exempt in Belgium.
- Because the reverse charge method does not apply, the foreign business is responsible for paying the necessary VAT to the Belgian VAT authorities.
Even if their Belgian supplies are below the Small Enterprise Threshold, foreign taxable persons are not eligible for the Small Enterprise Threshold exemption. They must register even if their Belgian supply does not exceed it.
Foreign taxable people cannot, in general, be registered for VAT purposes in Belgium if they are not responsible for paying the Belgian VAT due on the taxable transactions they conduct.
However, to simplify the recovery of Belgian VAT on purchases by foreign taxable people, foreign taxable persons are permitted to register in the following circumstances:
- A company based outside of Belgium that does work on Belgian immovable property (including, not only building, but also maintenance and cleaning).
- A taxable person who is not based in Belgium but is based in another EU Member State and conducts transactions subject to Belgian VAT via the reverse charge mechanism and has a right to a refund of more than 10,000 euros in Belgian VAT regularly.
Last Updated: 20/11/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
