VAT is a tax on consumption borne by the final consumer. VAT is collected in successive steps, i.e. every transaction of a production and distribution process. The normal rate is 21%.
Is Belgium in the EU for VAT?
Belgium, like all EU member countries, follows the EU VAT Directive on VAT compliance. … Suppliers of goods or services VAT registered in Belgium must charge the appropriate VAT rate, and collect the tax for onward payment to the Belgian tax authorities through a VAT filling: see Belgian VAT returns briefing.
How is VAT calculated in Belgium?
To work out the total price at the standard rate of VAT (21%), multiply the original price by 1.21. For the first reduced VAT rate (12%), multiply the original price by 1.12. For the second reduced VAT rate (6%), multiply the original price by 1.06.
Who collects VAT in Belgium?
Belgian VAT registrations and VAT returns are processed by the local tax office but the rules are based on VAT Directives set by the EU, of which Belgium is one of the 28 members. Belgium is obliged to incorporate the VAT Directives in its own laws.
How do you avoid VAT?
If you happen to offer a variety of products or services which are distinctly different, you may be able to avoid passing the VAT threshold by chopping up your business into smaller businesses that handle one product or service each. Your annual revenue is now split up between these separate businesses.
Do I need to register for EU VAT?
Register for VAT MOSS in an EU country
You’ll need to register for the VAT MOSS scheme in an EU country by the 10th day of the month after your first sale to an EU customer. If you make your first sale on 12 January 2021, then you must register by 10 February 2021.
How do I calculate VAT percentage?
Take the gross amount of any sum (items you sell or buy) – that is, the total including any VAT – and divide it by 117.5, if the VAT rate is 17.5 per cent. (If the rate is different, add 100 to the VAT percentage rate and divide by that number.)
Does Belgium charge VAT on exports?
When goods are delivered from Belgium to the UK and the customer is not VAT registered, they should not be subject to Belgian VAT. This is because they will be treated as an export and hence be zero rated (sometimes referred to as exempt with credit).
What are VAT costs?
A value-added tax (VAT) is a consumption tax that is levied on a product repeatedly at every point of sale at which value has been added. … VAT is commonly expressed as a percentage of the total cost. For example, if a product costs $100 and there is a 15% VAT, the consumer pays $115 to the merchant.
How do I get my VAT refund Belgium?
Request the VAT Refund form from the vendor. You will require your passport for this. Before leaving the EU, go to the customs office to have your VAT Refund forms stamped. Remember to take the goods for which you wish to receive a VAT refund with you to the customs office.
Do you pay VAT on the first 85000?
The £85,000 UK VAT threshold. … If your turnover is below a certain threshold, you will have no legal obligation to pay VAT. You must however register for VAT if: your VAT taxable turnover exceeds the current threshold of £85,000 (for the 2021/22 tax year).
Is VAT charged on Labour?
Employment businesses who are deemed to be supplying staff charge VAT on their supply as usual. However, if you supply your services as a labour only contractor then the VAT reverse charge will apply.
Can I invoice without VAT?
In the UK, businesses can trade and issue invoices without registering for VAT.