Invoicing and Tax regulation in Belgium
Invoicing Regulation in Belgium
In Belgium, all businesses engaging in B2B, B2C, and B2G are required to create invoices for their transactions. The law mandates the inclusion of specific details in the invoices such as names and addresses of businesses, invoice number, VAT identification number, date of issuance, description of services, and the VAT amount. All invoices should be issued within 15 days after the end of the month in which goods or services were supplied.
Real-time Reporting / Fiscalization in Belgium
Real-time reporting or fiscalization is not mandatory in Belgium. However, businesses should maintain a record of all their transactions in real-time to ensure proper reporting and compliance with the tax laws. Accurate fiscalization assists in the monitoring of revenue flows, thus preventing disputes arising from fiscal transactions.
E-Invoicing in Belgium
E-Invoicing is not obligatory for businesses in Belgium. But it is encouraged due to its effectiveness in reducing administrative burdens and cost efficiency. It should also be noted that electronic invoices are treated the same as paper-based ones and must meet the same legal and VAT requirements. All e-invoices should be stored for at least 7 years for tax audit purposes.
VAT/GST/Tax Compliance in Belgium
VAT compliance is mandatory for all businesses in Belgium. The country utilizes a standard VAT rate of 21%, with reduced rates of 12%, 6%, and 0% applied to certain goods and services. All VAT registered businesses are required to submit periodic VAT returns, generally on a monthly basis. For foreign businesses operating in Belgium, they might be liable to register and account for VAT, and a local fiscal representative may be appointed to manage VAT compliance.