Trends

Legal entities serving as directors or liquidators become subject to VAT as of … 1 April 2016

Legal entities serving as directors or liquidators become subject to VAT as of … 1 April 2016

Legal entities serving as directors or liquidators become subject to VAT as of … 1 April 2016

25.11.2015 BE law

In our Tax Newsletter of November 2014 we explained that the Minister of Finance decided to abolish the favourable regime whereby legal entities serving as directors or liquidators could choose whether or not to subject themselves to VAT for the services they rendered.

Starting 1 January 2015 these types of legal entities would be treated as taxable persons and they would necessarily have to comply with all VAT formalities (registration as a taxable person, invoicing, filing of VAT returns, etc.), and most importantly, they would have to charge VAT on the services they supply.

Because there was very little time between the announcement of this new position and its entry into force the Minister of Finance initially decided to postpone the entry into force until 1 January 2016. This date has now been further postponed until 1 April 2016. This should give taxpayers more time to better prepare themselves, taking into account that the VAT administration is working on a Circular Letter which should be published within a few weeks from now.

Companies that are not entitled to a full deduction of VAT (e.g., financial institutions, investment companies, hospitals, etc.) will see the cost of their directors' services increased by the non-deductible VAT. Please note that apart from appointing individuals (who are not subject to VAT when serving as directors or liquidators) instead of legal entities, some other solutions may be available to deal with the cost of this non-deductible VAT. A temporary solution may lie in the invoicing and/or paying of an advance on the directors' fees before 1 April 2016. More structural solutions may consist of the following: depending on the circumstances, parties could consider setting up a VAT group, certain services may benefit from specific exemptions such as the exemption for services rendered to certain Belgian investment companies or the exemption for small enterprises (which is expected to be increased to 25,000 euro p.a.). Please contact your tax advisors for the proper implementation of the above and for guidance on your company's specific situation.

Team

Related news

03.01.2020 NL law
Fiscale maatregelen tegen klimaatverandering

Articles - De wereldwijde toegenomen CO2-uitstoot baart veel mensen zorgen, gezien de hoeveelheid (media)aandacht die de klimaatverandering tegenwoordig krijgt. Men is het erover eens dat er een wereldwijde aanpak zal moeten komen om de klimaatverandering tegen te gaan. Het Klimaatakkoord van Parijs is een eerste stap in de goede richting en als het aan de Europese Commissie ligt, heeft Europa in 2050 een klimaat neutrale economie. Uit de overige bijdragen van deze Klimaatspecial blijkt tevens dat Nederland niet stilzit en verschillende maatregelen treft om de CO2-uitstoot te reduceren.

Read more

10.12.2019 NL law
David Orobio de Castro, Michael Molenaars and Job van Hooff new board Stibbe in Amsterdam

Inside Stibbe - As of 1 January 2020, David Orobio de Castro, Michael Molenaars and Job van Hooff will form the new board of Stibbe in Amsterdam. David Orobio de Castro has been on the board of Stibbe since 2016 and succeeds Derk Lemstra as managing partner. After a period of six years on the board, Derk will once again fully focus on advising clients in the field of corporate law.

Read more

05.11.2019 LU law
Stibbe renforce son cabinet au Luxembourg avec l’arrivée de Johan Léonard en qualité d’associé au sein du département de droit fiscal

Inside Stibbe - Luxembourg, 5 novembre 2019 – Stibbe renforce son cabinet luxembourgeois avec le recrutement latéral de Johan Léonard, associé au sein de la pratique de droit fiscal. Son arrivée permettra au cabinet d’augmenter son offre fiscale au Luxembourg afin de mieux répondre à l’évolution des besoins du marché. Johan a rejoint Stibbe le 4 novembre 2019.

Read more

30.08.2019 BE law
Speaking slot: De fiscus komt op bezoek. Wat nu?

Speaking slot - Op 29 augustus gaven vennoot Henk Verstraete en medewerkster Elien Van Malder een presentatie aan de advocaten van de Nederlandstalige balie van Brussel over de (grenzen van de) fiscale controles. Daarbij werden de onderzoeksbevoegdheden van de fiscus geanalyseerd in het licht van recente arresten van het Grondwettelijk Hof, het Europees Hof voor de Rechten van de Mens en het Hof van Justitie.

Read more

This website uses cookies. Some of these cookies are essential for the technical functioning of our website and you cannot disable these cookies if you want to read our website. We also use functional cookies to ensure the website functions properly and analytical cookies to personalise content and to analyse our traffic. You can either accept or refuse these functional and analytical cookies.

Privacy – en cookieverklaring