Foreign taxpayers and Belgian VAT
Foreign taxpayers do have to consider the Belgian VAT system. In some cases, they owe Belgian VAT on their sales ('outbound transactions') or pay Belgian VAT on their purchases, which can then be reclaimed via the right of deduction or via a refund.
With or without a permanent establishment
If the foreign taxpayer has a permanent establishment in Belgium, then the foreign taxpayer has a Belgian VAT number and all the VAT transactions involving Belgian VAT must be declared via the permanent establishment.
If there is no permanent establishment in Belgium and the foreign taxpayer owes Belgian VAT, then he can register (application for a VAT number). In this way, declarations can be made in Belgium. The taxpayer does not have to do this himself; he can also work with a so-called 'liable representative'. This representative then submits declarations that include both the VAT due, and the VAT reclaimed. The choice between a direct registration or a liable representative is reserved for EU taxpayers. Non-EU companies must have a liable representative.
Reverse charge of Belgian VAT
In many cases there is a reverse charge of VAT to the co-contractor, so registration or liable representative is not an issue. However, there may still be a refund through the Member State of establishment.
Separate regulation for telecom
There is a special rule for telecom companies. If they supply services to private individuals, they must in principle register in the country of the consumer, but to avoid a whole bunch of registrations, it is sufficient to have one VAT number. This special arrangement (OSS - One Stop Shop) will have greater application in e-commerce sales as of July 1, 2021 (sales on distance).
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