Apply now for the next part of the New Flemish Protection Mechanism
The Flemish Protection Mechanism (Nieuw Vlaams Beschermingsmechanisme), the VLAIO premium for entrepreneurs who experienced loss of turnover in the months of August and September 2020, was followed by the first part of the New Flemish Protection Mechanism, for entrepreneurs with significant loss of turnover and hospitality businesses subject to mandatory closure. From 4 January 2021, you can also apply for the next part of the Flemish Protection Mechanism. This part concerns the period from 15 November through 31 December 2020.
What are the conditions?
- + As an entrepreneur, you must carry on an active business: your enterprise must have stayed open, unless it was forced to shut down due to the mandatory coronavirus measures or closed for the annual holiday period.
- +You must have started your business before 1 October 2020 and it must have had an active business establishment in Flanders prior to 1 October 2020.
Who is eligible?
- + Trading companies that were forced to close by the government in the period from 16 November through 31 December 2020. This includes non-essential trading companies that were forced to close after 2 November 2020 but allowed to re-open on 1 December 2020.
- +Entrepreneurs who can demonstrate a decline in turnover of at least 60% (excluding VAT) compared to the same period in 2019.
Want to apply?
Follow this link (pink button) to learn more or apply for the premium.
How much support is provided?
You can apply for the premium per CBE number. For enterprises and people who are self-employed as their main business activity, it will amount to 10% of the turnover (excluding VAT) derived from work carried out in the period between 16 November 2019 and 31 December 2019. For people applying for the premium who are self-employed as a side venture, the premium amounts to 5%.
Are you an entrepreneur who was forced to close down in the period between 16 November 2020 and 31 December 2020? In that case, you qualify for the premium on the basis of this mandatory closure. You will not be required to demonstrate a loss of turnover. Your premium will be calculated as a percentage of your turnover excluding VAT for the period in 2019 corresponding to the period of closure.
Entrepreneurs who act as suppliers to industries subject to mandatory closure may apply for a shorter period corresponding to their customers’ period of mandatory closure. In that case, they will need to demonstrate a decline in turnover of at least 60%.
The minimum amount of support for the period between 16 November and 31 December is EUR 1000. This means that even if based on a percentage of turnover excluding VAT for the 2019 reference period, your calculated premium falls below EUR 1000 monthly, you will still receive the EUR 1000 minimum premium. Please note that as people who are self-employed as a side venture are entitled to half the amount of support, their minimum premium is also halved, that is to say EUR 500.
The amount of the premium is pro rata and based on the length of the closure. This means the prorating is calculated based on the number of closed calendar days during the period of mandatory closure compared to the total calendar days in the period between 16 November and 31 December 2020.
Maximum premium amounts for the period from 16 November through 31 December 2020:
- + EUR 11,250 for enterprises employing up to 9 employees registered with the NSSO
- +EUR 22,500 for enterprises employing 10 – 49 employees registered with the NSSO
- +EUR 60,000 for enterprises employing 50 or more employees registered with the NSSO
In addition to this second part covering November and December 2020, the premium has also been extended through the months of January and February 2021. You can apply for the premium for these months in February and March 2021 respectively
Do you require further information about these support measures? Please contact your account manager or one of our experts at contact@vdl.be.
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.
