Vandelanotte International has been contacted by numerous non-Belgian companies when they start up operations in Belgium and thus come into contact with Belgian VAT. It is noticeable that many companies have the same questions. This year, we will answer thefive most frequently asked questionsin this short news series.
This week: construction works in Belgium.
Question: We are a non-Belgian company operating in construction and have been contacted to provide construction works in Belgium. Should our company register in Belgium and submit periodic VAT returns?
Answer: In principle, Belgian VAT is chargeable on construction works carried out in Belgium. After all, the place of supply is where the property is located, in this case Belgium.
However, the party that pays the VAT depends on whether the client is a private individual (B2C) or a taxable entity established in Belgium who submits periodic VAT returns (B2B).
Where the client is a private individual, then the non-Belgian company will have to register for VAT purposes in Belgium, charge VAT on its supplies and pay the VAT to the Belgian tax authorities. Regarding registration, there is an option of simplified registration, but only if the activity is limited to Belgian territory.
Where the client is a Belgian company who submits periodic declarations (B2B), the non-Belgian company does not have to register for VAT in Belgium. In this case, it will be the VATable Belgian client who is charged VAT and it will be the Belgian co-contractor who must pay the Belgian VAT to the tax authorities.
If you want to find out more about this topic or on VAT issues, then please feel free to contact one of our tax specialists via firstname.lastname@example.org.
Next week: a warehouse with inventory located in Belgium.
We base our advice on current legislation, interpretations and legal doctrine. This does not prevent the administration from being able to challenge it or to change existing interpretations.