What should you do when you have received a credit note from a supplier, but do not receive the reimbursement of the credited amount due to liquidity problems of the supplier? According to a recent decision of the European Court of Justice (C-691/17), the VAT on this credit note should not be a cost to you.
The European Court of Justice (case C-201/18) has recently decided that a sale-and-leaseback transaction in some cases constitutes one financial transaction for VAT purposes, rather than two separate transactions. When such a transaction concerns capital goods, this can imply that no VAT adjustment should be performed by the transferor, even if the transfer was not subject to VAT.
According to the Flemish tax authorities (“VLABEL”), as of June 2017 Flemish succession duties would be due in case the interest of a partnership (i.e. maatschap in Dutch or foundation in French) was donated with usufruct reserve, but without registration in Flanders. In that case, a patrimonial company was involved. However, in a ruling decision dated 19 February 2018 (nr. 17054) VLABEL came to a totally different conclusion when a family business was involved.
On 12 June 2018, the Ghent Court of Appeal ruled a very interesting decision with respect to the application of 33% Belgium personal tax on a capital gain realized on shares by a private individual. Despite the fact that the Belgium tax authorities considered the facts as rather “complex” and therefore concluded that the capital gain was taxable, the Court disagreed!
On 22 May 2018, the Antwerp Court of Appeal has ruled that, if the Belgian tax authorities are not successful in taxing a company on a secret commission, they cannot tax the company Director afterwards on this secret commission. What made the difference?
As of 2018, the conditions for an accrual for risks and charges to be tax-deductible have changed. Meanwhile, both Belgium case law, the Belgium Finance Minister and the Commission for Accounting Standards also shed their light on this matter. Hence, high time for an update!
The so-called “Private PRIVAK” is a Belgium investment company that turns out to be very useful from a tax point of view to optimize your return-on-investment in non-quoted and growth companies. How does it work?
Although a fixed establishment and its head office qualify as one VAT taxable person, the turnover of both establishments cannot systematically be combined to determine the right to VAT deduction in the country of the fixed establishment and/or in the country of the head office, says the European Court of Justice.
A taxable person performing improvement works in a building he rents, often does this in exchange for a reduction of the rental price or a rent-free period. This has always been a thorn in the side of the Belgian VAT authorities, as the landlord usually makes such an arrangement to avoid incurring non-deductible VAT on improvement works. The Belgian VAT authorities have now updated their administrative guidance in this respect.
On 28 February 2019, the Belgian Parliament approved a major modernisation of Belgian company and association law. The new CCA will gradually apply from 1 May 2019 onwards. Simplification and flexibilisation of the existing legislation were in this respect the most important guiding principles.