As of 1 January 2020 the VAT exemption for intra-Community supplies of goods can only be applied if the buyer has communicated a valid VAT number to his supplier, attributed by a Member State other than that in which the transport begins. This has some practical consequences.
As of 1 January 2020, a uniform regulation will apply throughout the EU for the allocation of the transport in case of chain transactions. This will make it easier to determine in which relation the transport takes place and will also eliminate the risk that EU Member States would take a different position regarding the same facts.
Proof of intra-Community transport is essential to justify the VAT exemption for intra-Community supplies. Up to now, each EU Member State applied its own criteria with respect the required proof of transport, which led to insufficient legal security for taxable persons. This will change as of 1 January 2020.
At present, many EU Member States already have VAT simplification arrangements for call-off stock, but these differ per country. As of 1 January 2020, a harmonized simplification regime will enter into force in all EU Member States.
A Belgium company holds the usufruct of a property and finances significant construction works. What is the impact thereof on the natural person - Director of the company? Some useful best-practice guidelines can be derived from a decision of the Court of Appeal of Mons dated 1 June 2018.
The tax treatment of a non-competition payment in a cross-border context can give rise to discussion with the various tax authorities involved. Indeed, the question thus arises what country has levying power, i.e. either the country of the company making the payment and often the working state of the beneficiary of the payment or the country of tax residence of that beneficiary. A recent decision of the Brussels Court of Appeal sheds an interesting light on this debate.
On 12 September 2017, the Belgium tax ruling commission concluded that a capital gain on shares realized by the managers of a Belgium company in a Leveraged Buy-Out (LBO) context is tax-free. What made the difference?
As of tax year 2015, a small and medium-sized company has the option to pay an additional 10% Belgium corporate tax on its current-year after-tax profit when recording a liquidation reserve. If so, the shareholder – natural person has the possibility to cash those accounting reserves at no further personal tax cost, be it only upon liquidation of the company. However, as of 2020 it is also possible to distribute a dividend imputed on a liquidation reserve at a 5% personal tax cost only. If so, the total effective tax cost of the dividend distribution is 13,64%. What conditions need to be satisfied in this respect?
On 7 June 2017, Belgium has formally signed-off the OECD Multilateral Instrument (MLI) together with 67 other countries in Paris. On 6 May 2019, the legal implementation of MLI has been formally approved by all 6 Governments in Belgium. As a result, the MLI will enter into force for Belgium tax purposes as of 2020. What does that actually mean?
According to Belgium tax law, certain benefits in kind are valued on a lump-sum basis. However, in some cases, the beneficiary of the benefit in kind pays a private contribution to the employer granting the benefit. The question thus arises to what extent this private contribution reduces the taxable basis of the benefit or may even eliminate the taxable basis. New case law sheds some interesting new light on this matter.