Belgium Tax Man Targets Internet Sales Sites

by Ulrika Lomas, Tax-News.com, Brussels

22 February 2012

The Belgian tax authorities have recently announced that they are now closely monitoring Internet sales websites, including eBay, in a bid to clamp down on Internet traders failing to meet their tax obligations.

The country’s special tax inspectorate (ISI) and finance ministry (SPF), which have reportedly joined forces in the project, are said to have at their disposal specific tools enabling them to detect Internet traders in Belgium commercially active on various different websites.

The devices are said to include a powerful research tool to enable the authorities to scan the Internet for telephone numbers to locate traders offering goods under various aliases, as well as an image recognition device, allowing the administration to build up a file on the suspected trader, which can then be used as a point of comparison when evaluating the individual’s income tax declaration.

Although it is difficult to accurately determine how much money the tax services expect to generate from the project, it is estimated that in general sales over the Internet currently represent between 2.5% and 3% of the country’s gross domestic product (GDP).

Commenting on the joint venture, Belgium’s finance ministry insisted that the authorities are only concerned with those individuals in Belgium who are clearly carrying out a commercial activity, and who should officially be trading under a company number, have a value-added tax (VAT) number, be paying social contributions, and should be declaring the income generated from the activity to the tax administration.

Recommended