Belgium: VAT amendments enacted
The provisions of the legislation are generally in line with those in the proposed amendments.
The provisions are generally in line with those in the proposed amendments.
The Belgian Parliament in December 2021 passed legislation containing amendments to the value added tax (VAT) law. The enacted legislation was published in the official gazette on 31 December 2021.
The provisions of the legislation are generally in line with those in the proposed amendments. Read TaxNewsFlash and TaxNewsFlash
Accordingly, the legislation includes:
- An exemption for non-profit organizations that are of a political, trade-union, religious, patriotic, philosophical, philanthropic or civic nature
- A provision regarding the treatment of furnished accommodations
- A deduction of VAT under “actual use method”
- Elimination of presumptive VAT scheme
- VAT refund arrangements
- A reduced VAT rate for hair implants
- Measures concerning work on immovable property
- Place-of-supply rules for remote (distance) sales of imported goods
In contrast to the proposed amendments, the legislation does not provide for a reduced VAT rate for gas and electricity.
In addition, the legislation as enacted does not include an extension for application of the reduced VAT rate for the supply, intra-Community acquisition, and import of face masks and hydroalcoholic gels used to combat the coronavirus (COVID-19) pandemic (this extension was already provided by Royal Decree of 21 December 2021, as approved by the Belgian Council of Ministers).
Read a January 2022 report prepared by the KPMG member firm in Belgium
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.