Belgium Immovable Property Reverse Charge effective 1 January 2023

Stephanie Melhem
December 19, 2022

On November 10, 2022, Belgium published amendments to its reverse charge mechanism for immoveable property. Previously, the reverse charge mechanism applied only when the foreign taxable customer was identified for VAT purposes in Belgium via a fiscal representative. From 1 January 2023, when a Belgian established company performs construction supplies on immovable property, reverse charge will always apply provided that the customer has a Belgian VAT number and submits periodic VAT returns, this includes taxable persons established outside of Belgium.

Further, foreign taxable persons who are not obligated to submit periodic VAT returns are now obligated to inform the supplier that they do not meet the conditions for the application of this reverse charge mechanism.  If those conditions are not met and they do not report this to their contractor in time or correctly, the client will be liable for the payment of the VAT due and any interest and fines.

The amendment can be found here.

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Stephanie Melhem

Stephanie Melhem is a Junior Regulatory Counsel at Sovos Compliance. Within Sovos’ Regulatory Analysis function, Stephanie specializes in research and analysis of global VAT and GST. Stephanie received a B.S. with distinction in Applied Legal Studies from Suffolk University and a J.D. from the University of Massachusetts School of Law. Stephanie is a member of the Massachusetts Bar and New Hampshire Bar.
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