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Belgium Unveils New VAT Rules For Corporate Goods

by Ulrika Lomas, Tax-News.com, Brussels

26 December 2012


The Belgian finance ministry has recently published details of new rules governing the value-added tax (VAT) deduction accorded for company cars, mobile phones, and laptops.

According to the finance ministry, from January 1, 2013, the right to deduct VAT on company cars and other moveable goods such as smart phones, mobile phones, laptops, and digital tablets is to be limited to their actual business use.

The decision follows modifications to the country’s VAT Act, which entered into force on January 1, 2011.

To avoid as far as possible additional administrative costs for businesses, the tax administration has created a regulation for goods that a business makes available to its staff free of charge that outlines a choice of three methods to be used when calculating the business use deduction for company cars and explains that the business use for mobile phones, smart phones and laptops is set at 75% VAT recovery.

A company may elect, however, to justify actual business use by maintaining a record of individual use for each good if that proves more advantageous, the ministry points out.

For 2012, a transitional regime is in place. Taxpayers may opt to apply the previous regulations, which limit the VAT deduction for vehicles to 50% and provide that VAT is to be paid on any benefit, or to justify the effective business use by using the new rules.

From January 1, 2013, only the new rules will apply, however.

TAGS: tax | business | value added tax (VAT) | tax breaks | regulation

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