In a carefully worded practice note dated October 12, the Belgian VAT authorities have announced that they are relaxing their strict adherence to the form-over-substance approach regarding the conditions for the deduction of the input VAT paid on invoices received (Practice Note 2017/C/64 relating to the invoice as a condition for the exercise of the right to deduct VAT). Until now, the VAT authorities denied …
BTW-administratie zet voorzichtige stap naar âsubstance over formâ
In een zorgvuldig geformuleerde circulaire van 12 oktober kondigden de Belgische BTW-administratie aan dat zij de formele benadering van de voorwaarden voor de aftrek van voorbelasting op ontvangen facturen versoepelt (circulaire 2017/C/64 betreffende de factuur als voorwaarde voor de uitoefening van het recht op aftrek van btw). Tot op heden weigerde de BTW-administratie de BTW-plichtige het recht op aftrek van de BTW wanneer de factuur …
L’administration belge abandonne prudemment la prĂ©cĂ©dence de la forme de la facture
Dans une circulaire soigneusement rĂ©digĂ©e en date du 12 octobre, lâadministration de la TVA a annoncĂ© qu’elle assouplissait sa stricte adhĂ©sion Ă l’approche de la forme sur la substance en ce qui concerne les conditions de dĂ©duction de la TVA en amont payĂ©e sur les factures reçues (circulaire 2017/C/64 relative Ă la facture comme condition d’exercice du droit Ă dĂ©duction de la TVA). Jusqu’Ă prĂ©sent, …
Belgian Supreme Court Upholds Tax Treaty Precedence Over Domestic Law
The Belgian Supreme Court recently confirmed that Belgian tax authorities cannot hide behind the text of the domestic law to deny Belgian taxpayers the benefit of the Belgium-France tax treaty. (1971 protocol; 1999 protocol; 2008 protocol; 2009 protocol.) The case is a classic example of double taxation of dividends. French dividends are taxed at source at a reduced rate of 15 percent, and the net dividends are taxed again …
Government agrees on budget and tax shift
Prime Minister Michel announced that his Government had reached an agreement on the budget for 2015 and 2016 and on a âtax shiftâ of âŹ7.2 billion.  The government had to find an additional ⏠978 million to balance the budget for this year and to reduce the deficit to 2.5 percent as promised to Europe. An additional ⏠800 million will be needed for 2016, …
Belgium Restricts the VAT Exemption for the Settlement of Insurance Claims
The Belgian tax authorities have announced that they will be adapting their position on the VAT exemption for insurance claims settlement services in accordance with the case law of the Court of Justice of the European Union. The new position was announced in Practice Note 2017/C/36, dated June 12. Until now, the Belgian tax authorities accepted that the services for the settlement of insurance claims …
New Tax Measures in the 2017 Budget Law
The State Gazette published the Act of December 25, 2016, which implements the 2017 budget along the lines announced at the time of the budget discussions in October 2016. To read more, click here.
Belgium Reaches Agreement on Budget
In the early hours of October 15, Belgian Prime Minister Charles Michel announced that his government had found an agreement on the 2017 budget. The three topics that were at the centre of the budget discussion — an in-depth reform of the corporate tax, a capital gains tax for individuals, and new measures to channel savings into the economy — have been shelved for now. To …
â20 Percent for 2020â: A Scenario for Belgiumâs Corporate Tax Reform
Caterpillar, a U.S. multinational corporation, recently announced its intention to close its plant in Gosselies, Belgium, where it manufactures heavy machinery. While the news was not unexpected, it still came as a shock to the 2,200 employees who will lose their jobs. In 2013, 1,400 jobs were lost in a restructuring. Walloon Minister-President Paul Magnette said he was shocked and scandalized by the announcement, because …
Belgium Abolishes Patent Box, Introduces Innovation Box
Apart from the correction of a piece of legislation introduced at the end of last year (following Tate & Lyle), Belgium’s recently published Act of August 3, 2016, deals mainly with the abolition of the patent box, which provides an 80 percent deduction of patent income related to the development or enhancement of patents. To read more, click here.