Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/12/2012

Belgium - New VAT rules on long-term vehicle leasing  

December 12: Beginning in 2013, the place-of-supply rules concerning long-term lease of vehicles to non-business customers (B2C)—including the leasing of company cars to employees for consideration (actual payment or salary sacrifice)—are subject to a significant change in Belgium.

Currently and until the end of 2012, the long-term lease is subject to VAT in the country where the lessor is established. Under the new Belgian rules, the place of supply will shift to the place where the consumers are established, have their permanent establishment or usually reside.


As a consequence, beginning in 2013, the lessor must charge the amount of VAT of the EU Member State where the consumer is located—even if the lessor is not established in that EU Member State.


Thus, Belgian VAT will be due if the consumer is established in Belgium. Thus, a “VAT-able person” liable for the payment of the Belgian VAT must register for Belgian VAT purposes.


Read a December 2012 report prepared by the KPMG member firm in Belgium: New VAT rules as from 2013 for long-term leasing of vehicles





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