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Brexit - Obligation of VAT identification

Impact of Brexit on the obligation of VAT identification

  • What changes are there to the obligation of VAT identification in Belgium for an enterprise established in the United Kingdom ?

    Till December 31st 2020, persons liable to pay tax established in the United Kingdom who do not have a permanent establishment in Belgium could be registered either under an individual VAT identification number without a responsible representative (direct identification) or under an individual VAT identification number via the appointment of an individual responsible VAT representative in Belgium, who is required to provide a bank guarantee. For some specific operations (goods imported under the transit system, placed in a VAT warehouse, etc.) they could have recourse to a person approved beforehand (the global responsible representative).

    However, Article 55, §1 of the VAT Code provides that the appointment of a responsible representative is not mandatory for persons liable to pay tax whose place of business is in a country with which there is a legal instrument on mutual assistance similar in scope to that provided for in Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures and Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax.

    The Trade and Cooperation Agreement signed between the UK authorities and the EU includes a Protocol on administrative cooperation in the field of VAT. The European Commission is currently examining the scope of this Protocol in the field of administrative cooperation.

    Pending the official position of the European Commission, persons liable to pay tax established in the United Kingdom who currently have a Belgian VAT identification number with direct identification can keep their direct identification and are therefore exempted from the need to have a responsible VAT representative appointed in Belgium. Persons liable to pay tax established in the United Kingdom who apply for VAT identification in Belgium are also temporarily authorised to apply for direct identification without appointing a responsible representative.

    For the conditions to fulfill and procedures to observe, please get in touch with:

    Centre Matières Spécifiques (Centre Specific Matters), Team 1
    Boulevard du Jardin Botanique 50, PO Box 3410
    1000 Brussels

    Phone No.: 0032 2 577 40 50
    E-mail:  foreigners.team1@minfin.fed.be 

  • What changes are there to the obligation of VAT identification in the United Kingdom for a Belgian enterprise ?

    This issue as well as all possible changes in this regard will be solely implemented by the British tax administration. This concerns the obligation to be identified for VAT purposes in general as well as the situation of Belgian taxable persons which currently are directly identified for VAT purposes in the United Kingdom.