When a VAT payer in one EU Member State makes a supply of goods to a VAT payer in another EU Member State, that is an intra-Community supply. In such case, the place of supply is the place where the goods are delivered after dispatch or transport of the goods (article 40 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax).
VAT is due in the country where the receiver is located, and the supplier must issue an invoice without VAT. However, he can only use the VAT exemption if he proves that his customer is a VAT payer with a valid VAT number (see http://ec.europa.eu/taxation_customs/vies/) and that the goods have been dispatched or transported to the other EU Member State.
Apart from the new tax regime for the sharing economy, the Programme law of 1 July 2016 (Belgian State Gazette 4 July 2016) introduced a number of other fiscal measures, including provisions that introduce transfer pricing documentation in line with Action 13 of the OECD’s BEPS project and other budgetary measures, including measures to combat tax fraud.
The Law implements the three-tiered standardized approach set out in Action 13 of the OECD’s BEPS project, in the new articles 321/1 to 321/7 of the Tax Income Code 1992 with a master file, a local file and country-by-country reporting.
In 2015, Belgium introduced a transparency or "look-through" tax for legal arrangements such as trusts and trust-like arrangements and for other legal arrangements that have legal personality. The founder or the sponsor of such legal arrangement is taxed on the income of the legal arrangement as if it was his personal income, unless a beneficiary has received the income. Moreover, when the original founder dies his heirs must report the income of the legal arrangement.
The founder (or his heirs) must report the income and identify each legal arrangement ; the law introduces a penalty of EUR 6,250 for every arrangement that is not reported in the tax return.
Since 2010 Belgian companies and permanent establishments of foreign companies must report in their annual tax return all (direct and indirect) payments they have made to tax havens (art. 307 ITC 1992) for a total of EUR 100,000 or more. If they are not reported, these payments are not tax deductible. When reported, such payments are only tax deductible if the taxpayer can justify that the payment was made in the context of an actual and genuine transaction with persons other than artificial tax avoidance schemes.
The law defines as tax havens, in the first place, non-compliant jurisdictions, i.e. jurisdictions that are considered by the OECD Global Forum on Transparency and Exchange of Information as not having effectively or substantially implemented the OECD exchange of information standard.
In two Royal Decrees dated 1 March 2016 (published in the Belgian State Gazettes of 10 and 11 March 2016), the Minister of Finance has updated the list of countries which are deemed to have an advantageous tax regime.
The first list relates to the participation exemption, the basis for the Belgian holding company regime. One of the conditions for the participation exemption or dividend received deduction for dividends received by a Belgian company is that the subsidiary must not be resident in a country that has an ordinary corporate income tax regime that is substantially more advantageous than the Belgian corporate income tax. This means that either the ordinary nominal tax rate is less than 15 percent, or the effective tax burden does not arrive at 15 percent. For this purpose, a list of advantageous tax regimes is laid down in a Royal Decree ; this ensures legal certainty as only the tax regimes that are listed can be considered to be advantageous tax regimes.