Belgium simplifies VAT compliance for businesses
02 April 2014
Posted by: Author: Ulrika Lomas
Author: Ulrika Lomas
The Belgian Government has publicized how it has significantly simplified value-added tax reporting requirements for businesses over the course of the past year within the framework of its administrative simplification action plan (Plan D'Action Fédéral de Simplification Administrative).
Since the plan was first announced in March 2014, the Government has raised the VAT exemption threshold for small businesses and associations from EUR5,580 (USD7,705) to EUR15,000, and has increased the annual turnover threshold for quarterly VAT returns from EUR1m to EUR2.5m. The Government has also extended the validity period for electronic identification cards (eID), used for e-VAT filing, from five to ten years.
Finally, the Government has introduced a new mechanism (AIR) to assess the regulatory impact of proposed fiscal measures on businesses, which aims to prevent unnecessary and disproportionate hikes stemming from future fiscal policy decisions.
Adopted by the Council of Ministers on April 20, 2012, Belgium's 2012-2015 action plan aims to simplify the tax regime. The Government has so far implemented 173 of the 334 measures in the plan.
This article first appeared on tax-news.com.