Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/3/2012

Belgium - Import license deposits no longer required; refund opportunities 

October 3:  The Belgian tax administration issued a circular letter announcing that taxpayers can file a claim for a refund of a deposit made with respect to the “E.T.14.000 license” beginning 1 January 2013.

In addition, a deposit is no longer required for new license applications filed as from 1 October 2012.

Background

To avoid “pre-financing” of import value added tax (VAT), a taxpayer could apply for the “E.T.14.000” import license under certain conditions.


The license allowed the taxpayer to pay the import VAT through the periodic VAT return (grid 57), and provided an immediate deduction of the same amount in the same VAT return. Through this reverse-charge mechanism, no import VAT had to be paid to the customs authorities.


However, this import license was only granted if there was a deposit made equal to 1/24 of the amount of VAT due on the actual imports during the four quarters preceding the application.

New regime

The Belgian government decided to introduce a new reverse-charge regime—one not requiring a deposit—effective 1 January 2013.


The existing regime continues to apply until 31 December 2012, both for taxpayers that already have an import license and for taxpayers who apply for a license before year-end.


However, the tax administration will, as a transitional measure, no longer require deposits for license applications filed as from 1 October 2012.

Refund of the deposit

Because the new reverse-charge regime, beginning in 2013, will no longer require a deposit, a taxpayer can file a claim for refund of an already made deposit. To file a claim for refund, the taxpayer is to report the amount in grid 62 of the periodic VAT return for January 2013 (if monthly filing) or the first quarter of 2013 (if quarterly filing).


At the same time, the taxpayer must send a refund application to its VAT auditor.


If the taxpayer has not claimed a deposit refund via the VAT return, a refund can still be made in a VAT return to be filed before the end of 2016.


Read this October 2012 report prepared by the KPMG member firm in Belgium: Deposit E.T.14.000 license abolished. Do not forget to reclaim existing deposits as from 1 January 2013!




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in 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.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us