The Belgian government has submitted a Bill on the chargeability of VAT which is expected to come into force on 1 January 2016.
The Bill provides that VAT on the supply of goods and services in business-to-business (B2B) situations will become chargeable upon the issuance of the invoice. Furthermore:
- if no invoice is issued before the 15th of the month following the date of supply, VAT will become chargeable on that date.
- if a payment is (partially) paid before the taxable supply, VAT will be chargeable on the date of payment.
Currently the issue of an invoice before the services are completed / goods are supplied does not create a tax point, however following this Bill a tax point will now be created.
The Bill does not change the rules for intra-Community supplies of goods and services and the cash-based regime for most business-to-consumer (B2C) supplies.