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Belgium Requires Rounding For Cash Payments

by Ulrika Lomas, Tax-News.com, Brussels

16 December 2019


On December 9, 2019, the Belgian Federal Public Finance Service (FPS) reminded vendors that since December 1, 2019, they are required to round off cash payments to the nearest five cents.

According to a circular issued by the FPS on November 26, 2019, which provides commentary on the value-added tax consequences of the new rounding rules, vendors must round up or down to the nearest five cents on all cash payments. Taxpayers may apply this rule on a voluntary basis on non-cash payments.

The circular explains that if the total amount payable ends in one, two, six or seven cents, it should be rounded down to the nearest multiple of five cents. If the total amount payable ends in three, four, eight or nine cents, it should be rounded up to the nearest multiple of five cents.

Companies must round the total amount paid in cash by the consumer, subject to the following conditions:

  • the payment is made in the physical presence of both the consumer and the company, and
  • the amount payable is more than five cents.

Rounding is not permitted for distance sales and supplies between private individuals or companies.

If the company only rounds cash payments, only the amount actually paid in cash should be rounded (even if the payment is made partly in cash and partly using another payment method).

If the company decides to round payment methods other than cash, the total amount payable is rounded (even if the payment is made partly in cash and partly using another payment method). In this case, it must clearly display that the total amount is always rounded.

The sales receipt or supporting documentation must indicate the total amount payable, and the rounded amount, whether that is the amount actually paid in cash or the actual total amount paid.

TAGS: individuals | Finance | tax | business | value added tax (VAT) | Belgium | retail | Tax

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