You are here:
09 January 2018 / news

Public body to be considered a VAT taxable person or not? New guidance released by Belgian VAT authorities

On 22 December 2017, the Belgian VAT authorities published circular letter 2017/C/91 which aims to provide additional guidance on the VAT status of public bodies when performing certain economic activities.

Public body to be considered a VAT taxable person or not? New guidance released by Belgian VAT authorities

Instead of outlining general principles, the VAT authorities tackle 24 specific situations which can trigger VAT issues for municipalities & social service departments (OCMW / CPAS) and their respective suppliers and ‘customers’.

The situations include Q&A like:

Should a municipality be considered as a VAT taxable person when it:

    • puts personnel at the disposal of another public body?
    • performs immovable works for its residents (such as connecting a building to the sewerage network)?
    • provides parking spaces on a public road against payment of a retribution or when it provides such space on a parking lot not located on a public road?
    • performs garbage collection services or sells garbage bags to its residents? 

Should a social service department (OCMW / CPAS) be considered as a VAT taxable person when it:

  • operates the cafetaria of its assisted-living centre?
  • supplies meals to senior citizens or people in need against payment of a (reduced) price?

You can read the full version of the circular letter here (NL / FR).

Please reach out to the Indirect Tax team of Loyens & Loeff should you have any questions about this subject.



Changed tax reporting obligations for benefits received from foreign based group companies

Belgian tax reporting obligations for benefits paid by foreign group companies

Belgian employers must withhold payroll taxes and report benefits on a tax form 281.10 or 281.20. read more
French payroll taxes as of 1 January 2019

French payroll taxes as of 1 January 2019

The introduction of French payroll taxes for French tax residents as of 1 January 2019 is a current eye catcher as it also impacts foreign based (e.g. Belgian... read more
Excellent results Loyens & Loeff in Chambers Global 2019 rankings

Excellent results Loyens & Loeff in Chambers Global 2019 rankings

Loyens & Loeff holds on to its top ranking position as leading business law firm in the Chambers Global 2019 rankings. read more
Stay informed

Don't miss out. Stay up to date about our latest news and events.

Subscribe