Accordance » Belgium

Belgium – New Deadlines for 8th Directive Claims

admin — Thu, 03 Jun 2010 08:40:40 +0000

The introduction of the VAT package in Belgium means that claims under the Refund Directive, which replaced the 8th Directive with effect from 1 January 2010, must be made by 30 September of the year following the year to which the refund request relates. This has created an issue because the previous three year time limit meant that claims for VAT incurred in 2007 and 2008 could still have been made until the end of 2010 and 2011 respectively.

In order to provide relief for taxpayers that have not yet made claims for 2007 and 2008, the Belgian Tax Authorities have introduced a transitional regime allowing claims for these years to be made until 30 September 2010.

Claims will have to be made in writing to the Belgian Tax Authorities rather than via the online portal which is to be used for Refund Directive claims.

Belgium: Use and enjoyment rule for freight transport

admin — Tue, 11 May 2010 10:30:55 +0000

From 4 April 2010 a new use and enjoyment rule applies in Belgium for B2B freight transport and ancillary services. The effect of the new rule is that where the use and enjoyment of a service takes place outside of the EU but the supply is made to a Belgian taxable person, the place of supply is shifted to outside the EU. As a result, the supply is no longer liable to Belgian VAT.

The new rule also deals with transport which take place partly inside and partly outside of the EU, for example freight transport from France to Italy but where the journey goes through Switzerland. In such cases, it is only the transport that takes place in Switzerland that is affected by the use and enjoyment rule and the transport in France and Italy follows the normal place of supply rules. The distances covered by each respective part of the journey are used to determine the amount of the supply that is subject to the use and enjoyment rule.

It should be noted that the use and enjoyment rule does not apply to transport and ancillary services which are used and enjoyed in Belgium but have a place of supply outside of Belgium, for example because the customer is established outside of the EU. However, it is possible that the Belgian Tax Authorities may introduce further use and enjoyment rules in the future.

Belgium press charges on three fraud suspects

admin — Fri, 15 Jan 2010 10:07:17 +0000

Belgian authorities have decided to press charges on the three Britons and an additional Dutchman accused of carousel fraud involving carbon emissions.

The suspects were arrested last month and charged with buying emissions allowances in the UK before selling them on through intermediaries via a firm set up in Tournai, west Belgium.

Authorities said the group then pocketed the 21 per cent VAT charged on the emissions in Belgium on the sale of carbon credits, thus costing the Belgian Treasury some three million euros in lost revenues.

The decision to press charges forms part of Belgium’s sweeping drive to crackdown on carousel fraud, which has cost the EU up to five billion in lost revenues over the last 18 months.

Last month, three people were arrested by French authorities for involvement in a carbon carousel fraud on France’s BlueNext exchange.

Pollution permits for businesses were launched in the European Union in 2005 amid attempts to cut carbon emissions but the differing tax policies implemented across Europe have provided fertile ground for fraud to flourish.

Three Brits charged with VAT carbon fraud

admin — Wed, 06 Jan 2010 10:28:36 +0000

Three Britons have been charged with taking part in VAT fraud by authorities in Belgium.

The individuals were arrested in Tournai on December 29th as part of an investigation relating to unpaid taxes to the value of three million euros and have been charged with fraud in trading carbon emissions permits, reports AFP.

Belgian prosecutor Jean-Betrand Cambier said the three Brits may have travelled to Belgium to try and gain access to funds that had been frozen as part of the fraud investigation.

He explained that the trio had set up a company in Tournai to market carbon emissions permits bought in Britain VAT-free and sold on without paying the 21 per cent rate due in Belgium after staged transactions.

The three have been placed in detention but deny allegation of criminal conspiracy, money-laundering and making false declarations.

According to European police agency Europol, VAT carbon fraud has cost Europe around five billion euros in lost revenues within the last year and a half alone.