Belgium: Draft legislation to provide an exception to justification requirement for certain costs

New draft law would provide an exception to justification requirement for costs linked to supplies of goods or services

Draft legislation to provide an exception to justification requirement for certain costs

The Belgian Parliament on 13 January 2022 approved a new draft law that would provide an exception to the justification requirement for costs linked to the supplies of goods or services (e.g., commissions, brokerage fees, trade or other discounts and other fees) by a taxpayer established in the European Economic Area for which an invoice or similar document is established. Such documents include a credit note, a simplified invoice or the internal document issued between members of a value added tax (VAT) grouping.

The draft law also introduces a threshold of €1,000 (not to be indexed) below which the costs per year and per supplier must not be justified by statements.

The new rules would apply to costs attributed as from 1 January 2021 and would result in a considerable reduction of the administrative burden on taxpayers.

Read a January 2022 report prepared by the KPMG member firm in Belgium

 

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