The tax authorities issued guidance (administrative circular 2019 / C / 65 (9 July 2019)) with respect to the rules that apply for value added tax (VAT) purposes. The guidance includes examples intended to illustrate application of the VAT rules.
In 2013, certain requirements for an “advance invoice” (that is, an invoice issued in advance of the delivery of goods or the supply of services) were repealed. With this change, there were certain practical challenges and eventually the rules were amended. Thus, effective 1 January 2016, the VAT rules were revised so that the use of an invoice once again was critical to claiming VAT. An invoice issued before the delivery of goods or the completion of services is required for purposes of making the VAT “claimable.”
With regard to domestic deliveries of goods, in general, the taxable event takes place and the VAT becomes claimable at the time when the goods are delivered (article 16, § 1 of the VAT law). However, the amount of VAT becomes claimable based on the invoiced amount, whether the invoice is issued before or after the time when the delivery is made. If the invoice is not issued or is issued late, the measures provide that the VAT will then become due on the 15th day of the month following that in which the chargeable event occurred (article 17, § 1 of the VAT law).
The guidance also addresses the VAT rules for intra-Community deliveries of goods or supplies of services.
The recently published circular provides answers to questions about VAT claims in various situations and examples illustrating when invoices must be reported, the amount of VAT that must be paid, and the VAT that can be deducted.
Read an August 2019 report (Dutch) prepared by the KPMG member firm in Belgium
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.