Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/22/2012

Belgium - Transitional rules on determining VAT chargeability 

December 22:   The authorities in Belgium have provided transitional guidance concerning application of new rules for determining the chargeability of value added tax (VAT).

Beginning 1 January 2013, VAT is due when a supply takes place or when the service is completed. However, the issuance of an advanced invoice no longer makes VAT due. Only a payment prior to the time of supply or before completion of the service can make VAT payable (beginning 1 January 2013).


Because of some uncertainty of application of the new VAT rules, companies have been unable to adapt their invoicing processing systems timely, so as to be in accordance with the new VAT rules. The VAT authorities’ guidance (dated 19 December 2012) provides some clarification and allows for a transitional regime during 2013, so that VAT taxpayer can elect between the old or new rules with respect to the chargeability of VAT.


Read a December 2012 report prepared by the KPMG member firm in Belgium: New rules on chargeability of VAT: transition rules published




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