by Eline Delerue and Dries Torreele
New VAT formalities for Belgian directors of Luxembourg companies
Natural persons residing in Belgium and sitting on the Board of Directors of a Luxembourg company will have to comply with a number of Belgian VAT formalities from 1 January 2017 onwards.
Following a Luxembourg circular, even independent directors will be liable for VAT in Luxembourg and the services they render will be subject to VAT. The VAT rate in Luxembourg is 17%.
Specifically, Belgian natural persons who take on the role of director in a Luxembourg company must observe the following formalities:
- VAT identification in Belgium (Form 604A)
- Preparation of sales invoices
- Filing of periodic VAT returns and intra-Community assignments
Note that because this is an IC service, the VAT debt is transferred to the Luxembourg undertaking. This also applies to bonuses.
For more information on this subject, please feel free to contact one of our specialists at: contact@vdl.be.
Eline Delerue
Team Manager Tax eline.delerue@vdl.be
Dries Torreele
Fiscal Jurist dries.torreele@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.