Belgium: VAT

On 3 March 2014, the Belgian Council of Ministers issued a press release concerning the new turnover threshold under which small businesses and associations qualify for VAT exemption. The turnover threshold will be increased from EUR 5,580 (current) to EUR 15,000 (announced). The Belgian government still has to issue and publish a royal decree in order for the increase to take effect. 

After the turnover threshold is officially increased, more businesses and associations will be able to apply for VAT exemption. The turnover consists of the value (VAT not included) of all transactions that would have been subject to Belgian VAT in that specific year. This means that small businesses and associations must check whether they qualify for the VAT exemption on a year to year basis.

Transactions connected to real estate, the supply of new transport vehicles or second-hand goods, and the supply of goods carried out by taxable entities that are not established in the Member State in which the VAT is due, are excluded from the turnover threshold. However, export and intra-Community transactions that are not carried out occasionally, financial  transactions, insurance and re-insurance transactions are taken into account. 

The new threshold is applicable as of 1 April 2014. Taxpayers who wish to benefit from the VAT exemption in this calendar year should have filed a request before 21 March 2014.


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