• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/18/2013

Belgium - VAT transition regime to apply during 2014 

October 18: A transition regime—allowing taxpayers more time to apply new rules for determining the point in time when value added tax (VAT) is chargable on invoices issued in advance of the supply of goods or performance of services—is being extended by the Beligan authorities during 2014.


What constitutes the point in time when VAT becomes “chargeable”?

Effective 1 January 2013, the issuance of an invoice before a supply of goods takes place or a service is completed no longer constitutes the point in time when VAT becomes “chargeable” (i.e. payable to the VAT authorities).

Only the supply of the goods or the completion of the service itself, or the receipt of a (partial) payment prior to the supply or the completion of the service, can result in the VAT becoming payable (and deductible).

Transition allowed, new guidance anticipated

In response to comments from the business community and to provide businesses sufficient time to adapt to the new rules, the Belgian tax authorities decided to allow a regime for transition to the new rules during 2013. This transition regime allowed companies a choice between applying the former rules or the new rules.

Also, it was anticipated that the tax authorities would publish new guidance that would clarify how the new VAT rules would be finalized and implemented.

To date, the anticipated guidance for implementing the new VAT rules has not been published by the VAT authorities.

In answer to a parliamentary question*, the Minister of Finance confirmed the extension of the transitional regime to 2014. Therefore, taxpayers can continue to apply the former rules during 2014.

In addition, the Minister of Finance announced a new round of consultations with all stakeholders would be organized, concerning application of the new rules as from 2015.

*House of Representatives, Q&A, Bulletin nr. 130, question nr. 535 of 25 July 2013 by Marghem (p. 567)

©2014 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
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 to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now