Tax Insights

In addition to the various domestic options to avoid VAT liquidity problems (accelerated refund, review of the filing periodicity of the returns, etc.), the foreign VAT refund is often overlooked. 

INTRODUCTION  On 22 December 2021, the European Commission unveiled a Directive proposal aiming at promoting an efficient and fair business tax system for the European Union. 

As a reminder, companies, non-profit associations, foundations, trusts and other constructions established in Belgium are required to disclose information about their beneficial owner(s)to the UBO Register.

As from 1 July 2022, non-EU taxpayers will have to request the refund of Belgian VAT electronically. The main goal of this new VAT refund procedure is to be able to process the refund requests from British companies more efficiently. This implies that the refund procedure will be largely harmonized with the refund procedure for EU companies. 

Earlier this year the ‘law on various tax provisions of 21 January 2022’ was published in the Belgian Official Gazette. Within this month’s Tax Insights, special attention is paid to one of these provisions which drastically alters the existing regulations on the annual preparation of the fee forms 281.50 aiming to reduce the administrative burden for companies.

By the end of last month, the Belgian tax authorities finished determining the notional rental value or so-called ‘cadastral income’ (hereafter referred to as NRV) of foreign real estate properties owned by Belgian tax residents and notifying the Belgian property owners hereof.

The increasing popularity of company cars in Belgium is tightly intertwined with the high tax burden levied on typical gross salary payments.  

Belgium aligns with the opinion of the Court of Justice (ECJ, C-288/16) and restricts the scope of the exemption applicable to export-related transport services.

The law of 25 November 2021 regarding the tax and social greenification of mobility leaves little to the imagination. Carbon emission company cars will be fiscally discouraged and will in all likelihood gradually disappear from the street scene.

As from 1 January 2022, the VAT recovery on imports into France is transferred from the Customs Authorities (DGDDI) to the Directorate General of Public Finances (DGFIP).   Here are the key elements of this change.

As announced in our December 2021 Tax Insights, following the agreement on the federal budget, the Belgian government has decided to adapt the existing special tax regime for foreign executives with a new tax regime effective January 1st, 2022. A transition period has been established for taxpayers who benefit(ed) from the old regime.

On November 9, 2021, Belgium and France concluded a new double tax treaty (hereinafter: "the new treaty"). The old treaty - still in force at the moment - is one of the oldest treaties concluded by Belgium (1964) (hereinafter: "the old treaty"). The new treaty revises the old one on a few points, including the lump-sum foreign tax.

Since January 1st 2022, the scope of the VAT exemption for (para)medical cares has been amended. End of 2021, the Ministry of Finance has published extended guidelines (Circular Letter 2021/C/144 of 20 December 2021) in which tolerances are also foreseen to give practitioners time to comply with their new VAT obligations.

6% VAT on re-construction Extended beyond 2022 and to include victims of flooding VAT certificate abolished

As a consequence of the federal budget agreement, the Belgian government has decided to adapt the existing special tax regime for foreign executives with a new tax regime that will enter into force on January 1, 2022. Please note that this new regime still must be submitted to the Belgian Parliament who can still make adjustments to the changes mentioned below.