Belgium update on VAT liability on invoices

Since the changes to the Belgian electronic VAT invoice rules at the end of last year, further guidance has been provided raising invoices.

On the 19th December 2012, the Belgian authorities published transitional rules for issuing invoices. This is to cover the new ruling that issuing invoices no longer necessarily represents the tax point – when the VAT liability arises. This would create doubts about the deductibility of the VAT by the recipient of the services or goods.

The Belgian VAT authorities have agreed to allow a transition year, 2013, when it will allow EU VAT registered businesses to use either methodology. This means that suppliers will pay to the tax authorities the VAT on their invoice, and the recipient may deduct it in their VAT return at the same time.

There are a number of provisos to this waiver. The tax authorities will provide more details on the new regime and how it will be fully implemented from 2014.