Special Regulation HAPPENINGS, FAIRS and MERCHANDISING

Transcription

1 DRAFT Special Regulation HAPPENINGS, FAIRS and MERCHANDISING 1. Introduction This regulation foresees under certain conditions a deviation of the principles of VATformalities in case taxable activities are operated in Belgium by organizers of happenings, fairs and conferences who are not established in Belgium, participants of happenings, fairs and conferences non-established in Belgium and intermediary non-established in Belgium who are specialised in merchandising these events. The taxable persons referred to in the first paragraph do no longer benefit the exemption of VAT-identification as meant in pt.85 of the instruction of the Corporate and Income Tax Administration nr.4/2003 (see : fiscaliteit, Administratieve richtlijnen en commentaren, circulaires, ET AOIF N 4/2003). This decision cancels b) of point 85. These taxable persons are subject to a VAT-identification in Belgium, even when their operations are occasional. 2. Application field Target group that can benefit of the special regulation happenings, fairs and merchandising : - taxable persons, non-established in Belgium, who organize spectacles, happenings and fairs in Belgium (is meant : taxable person who gives the right of access to visitors/participants on payment of an entrance-fee e.g. organizers of conferences and seminars in Belgium that are non-established in Belgium. - taxable persons, non-established in Belgium, who participate at spectacles, happenings and fairs (e.g. exhibitors that are not established in Belgium, pop and rock groups, stallholders on Belgian Christmas markets and fairs,..) - intermediate persons that are not established in Belgium and specialise in merchandising these spectacles, happenings, fairs,.. who have a turnover, VAT excluded, that does not exceed per calendar year for taxable operations that took place in Belgium (including the operations where the reversecharge system to the co-contractor is applied) This regulation falls outside points 88 and 89 of the instruction AOIF 4/2003 concerning the connection with the authorization not to identify for VAT if it concerns occasional activities, even if the due and deductible VAT stays under the mentioned threshold. Concerning this target-group, the occasional operations are not taken into account. When these operations are liable to VAT, a VAT identification is obliged. Are not meant : - the taxable persons of the target-group who perform intra-community deliveries in Belgium, as meant in art 39.bis, 1, 1 of the VAT Code (operations as stipulated in art 39bis, 1, 4 of the VAT Code are not excluded by this regulation) Special Regulation HAPPENINGS/FAIRS 1/7 1ste July 2009

2 - regular participants to weekly markets that are not established in Belgium and who are submitted to VAT returns and payment of VAT, or can benefit from the exemption of VATidentification if their activities in Belgium are only occasional (pts 88 and 89, instruction AOIF 4/2003). - the taxable persons of the target-group who are also involved in activities in Belgium that are liable to VAT and are submitted to periodical VAT-returns. - as for the payment of VAT on excisable goods during a fair, we refer to numbers 53 to 56 of the instruction n 8 of 8/10/ VAT Identification The concerned taxpayers that are not established in Belgium must request a VATidentification before carrying out any taxable operation in Belgium. This demand must be done at the Central Office for Foreign Taxpayers by means of the form 604A. This form can be downloaded via (nl > formulieren > identificatienummer 604A) or can be obtained at the Central Office for Foreign Taxpayers control service and situated : CKBB Control Paleizenstraat 48 (6 th floor) 1030 Brussels Fax Tel contr.btw.ckbb@minfin.fed.be According art 50 1, 1st section Belgian VAT Code, a VAT identification number with the letters BE is assigned by the Administration of VAT, registration and domains to each taxable person non established in Belgium, if the following three conditions are fulfilled : 1. a taxable person who is not established in Belgium carries out operations in Belgium that are mentioned in the VAT Code 2. a taxable person who is not established in Belgium carries out operations in Belgium for which he is entitled to deduct the VAT 3. a non established taxable person owes VAT to the Belgian State by economic activities that are subject to VAT according articles 51 and 52 of the Belgian VAT code. When these conditions are fulfilled, the target group must request a VAT identification and may no longer benefit from the exemption of VAT identification as mentioned in point 85 of the instruction AOIF 4/2003. With this decision b) of point 85 is cancelled. According art 53 quarter of the VAT Code, this VAT- identification number must be mentioned to all customers and suppliers, e.g. to the person they rent the market stand from. Special Regulation HAPPENINGS/FAIRS 2/7 1ste July 2009

3 When a taxable person of the target group performs taxable operations in Belgium for over more than /year (excl. VAT), a VAT number with the letters BE is also necessary, and the special regulation will not be applied. 4. Delivering invoices The taxable person is not obliged to deliver an invoice when supplying goods or services to physical persons who intend them for private use, except for the cases meant in art 1 1 of the Royal Decree 1 e.g. when supplying land vehicles for transport of persons or cargo, yachts or pleasure crafts, sales on hire purchase. According art 53 2, 1 of the VAT Code, the target group is obliged to deliver an invoice when goods or services are supplied to another taxable person or a non-taxable legal person who is not exempted by art 44 of the VAT Code. 5. Bookkeeping Exemption of the obligation to keep a record of incoming and outgoing invoices Meant taxable persons are exempted to keep a record of incoming and outgoing invoices as stipulated in art 14 of the Royal Decree 1, if he keeps the copies of the delivered invoices according an uninterrupted series of numbers that are contributed on receipt or when they are drawn. Obligation to keep a receipt-ledger An obligation to keep the receipts in a receipt-ledger is an obligation for all taxable operations with physical persons, who destine them for private reasons, and for which there is no obligation to draw an invoice. This book can be kept on paper, but not on separate sheets. It should be a bound book with numbered sheets. Daily inscriptions must be based on dated accounts of which the original or double must be kept. The receipts must be split according the VAT rate. This inscription per date may be done globally on a daily basis if the receipts mention the day of receipt as well as the kind of goods that are sold. However, if the income for supplying the goods exceeds 250 per piece, VAT included, a separate record must be done with the mention of the kind of goods sold. At the end of each declaration period (a year or a semester) a special VAT-declaration happenings, fairs and merchandising (see number 7) must be submitted for the covered period that mentions, per tariff, the total taxable amount (VAT excluded) and the corresponding due VAT (if it occurs, operations for which an invoice was delivered must be added). Special Regulation HAPPENINGS/FAIRS 3/7 1ste July 2009

4 Keeping a beginning and end inventory By way of simplification, the Administration allows that no receipt-ledger must be held by taxable persons who, upon arrival at a happening, fair or spectacle, are in possession of a complete beginning inventory that describes the kind of goods, their number and selling price, and who format an end inventory at the end of the happening. 6. Right of VAT-deduction Scale The concerned taxable persons may deduct the VAT which has been levied on expenses that are bound to economic activities in Belgium according the normal rules of vat-deduction (art 45 and next of the VAT Code), e.g. VAT on stallage. Exercising the right of deduction In order to deduct VAT, the taxable person must be in possession of an invoice compliant to the VAT legislation (art 53 2 and art 53octies of the VAT Code with mention of art 5 1 of the Royal Decree n 1). The original incoming invoices can be requested by the Administration. 7. Special VAT-declaration happenings, fairs and merchandising Deviation As an exemption to the art 53, 1, 2 of the VAT-legislation, the target-group is not obliged to submit a monthly or quarterly declaration. In order to declare his due or deductible VAT, he has to submit the special VAT-declaration happenings, fairs and merchandising. Form The special VAT-declaration happenings, fairs and merchandising can be downloaded via or can be obtained at the Central Office for Foreign Taxpayers Control. This declaration contains the period that the declaration covers (section 1), the identification of the taxpayer (section 2), the references concerning the bank account number (section 3) and the operations that are taxable in Belgium (section 4 and 5). Section 4 gives the total amount of payable VAT that comes from outgoing transactions (receipts and invoices against the applicable rate), shown in box 71. Section 5 gives the total amount of payable VAT that comes from incoming transactions (box 74) and the total amount of deductible VAT that comes from incoming transactions (box 82). Special Regulation HAPPENINGS/FAIRS 4/7 1ste July 2009

5 Section 6 contains the difference between due and deductible VAT. This amount can be filled out in box 83 when the amount is in favour of the Belgian State (when box 80 (= box 71 + box 74) > box 82), or in box 84 when the amount is in favour of the taxpayer (box 82 > box 80 (= box 71 + box 74). Section 7 : date and signature. Place of submitting The completely filled out declaration must be submitted to the Central VAT Office for Foreign Taxpayers. You cannot submit the declaration electronically. Periodicity and submission date The declaration must be submitted yearly when the annual turnover of the economic activity in Belgium of organizing, participating and merchandising on spectacles, happenings and fairs does not exceed (VAT excluded). The yearly declaration covers the calendar year and must be submitted at the latest on the 31 st of January of the next year. The declaration must be submitted each semester (6 months) when the turnover exceeds The declaration that covers January till June must be submitted at the latest on the 31 st of July of the calendar year. The declaration that covers July till December must be submitted at the latest on the 31 st of January of the next calendar year. When the threshold of is exceeded during the year, a yearly declaration must be submitted for the current year at the Central VAT Office for Foreign Taxpayers before the 31 st of January of the next year. The concerned taxpayer will be informed by the Central VAT Office for Foreign Taxpayers that from that moment on a declaration must be submitted each 6 months. Nil return A nil return must be submitted when no operations occurred during the concerned period. This nil return has the same periodicity as the last special VAT-declaration happenings, fairs and merchandising that has been submitted. In case of an irregular activity in Belgium, the concerned taxpayer can always notify the Central VAT Office for Foreign Taxpayers of this future activity in Belgium. In case of cessation of activity in Belgium, the Central VAT Office for Foreign Taxpayers should be informed in order to delete the VAT identification. Transition to normal regulation with submission of periodical tax returns Special Regulation HAPPENINGS/FAIRS 5/7 1ste July 2009

6 Taxpayers who demand the normal regulation with submission of periodical declarations because they exceed the threshold of or because they start activities other than those who are aimed with the special regulation, must inform the Central VAT Office for Foreign Taxpayers. At the end of the happening, fair or the spectacle, they need, without delay, submit a special vat declaration happenings, fairs and merchandising for the concerned period. 8. Payment or refund of tax Payment When the specific VAT declaration happenings, fairs and merchandising results in an amount in favour of the Belgian State, the due amount of VAT must be paid to the postal account that is mentioned on the payment form, and this within 4 weeks after reception of the payment notification. Refund When the specific VAT declaration happenings, fairs and merchandising results in an amount in favour of the taxpayer, the amount will be refunded, after approval, on the account number that was given by the taxpayer. 9. Exemption of the obligation to submit an annual list of taxable clients and intracommunity declaration Meant taxable persons must not submit the yearly list of taxable clients, as mentioned in art 53quinquies of the VAT legislation. Neither are they obliged to submit the intra-community declaration as meant in art 53sexies of the VAT legislation. 10. Cessation of activity In case of cessation of economic activities concerning organizing, participating or merchandising spectacles, happenings and fairs in Belgium, the Central VAT Office for Foreign taxpayers need to be informed. This notification must be done by a signed letter. In this case and when there is no other activity that is going to be started that needs an identification in Belgium for vat purposes, the VAT identification number with the letters BE will be deleted and the taxpayer is no longer obligated to submit a (nil) specific VAT declaration happenings, fairs and merchandising. In case the taxable person ends his activities during the first semester, the last declaration should be submitted at the latest on the 1 st of July if the same year, even if he was held to submit yearly declarations. In case of ending the activities during the second semester, the last declaration should be submitted at the latest on the 31 st of January of the next year (or a yearly declaration, or the second semester declaration, according the normal submit system). Special Regulation HAPPENINGS/FAIRS 6/7 1ste July 2009

7 11. Article 5, 1, first section of the Royal Decree n 31 We like to specify that the co-contractor regulation as meant in art 5, 1, first section of the Royal Decree 31 is not applied, as the target group is identified for VAT and is obliged to submit the due VAT in the special declaration happenings, fairs and merchandising. Article 5 1, first section of the Royal Decree 31 is not applied either to the non-established taxpayer in Belgium who organizes spectacles in Belgium or participates in fairs as meant in point 85 b and benefits of the old regulation, and this as a consequence of point 353 a) of the instruction AOIF 4/ date of taking effect and transition period This special regulation for the operations in Belgium connected to the organisation, participation and merchandising to happenings, fairs and spectacles by taxpayers that are not established in Belgium, takes effect from the 1 st of July All operations that occurred before this date are treated according the old regulation. Taxpayers who already obtained an authorisation number according the old system for a happening, fair or spectacle that will take place after the 1 st of July 2009, will be contacted by the Central VAT Office for Foreign Taxpayers, in order to switch to the new regulation and to obtain a VAT identification. During the transition period and irrespective of the annual turnover, every person who benefits of the regulation will be obliged to submit a first six-monthly special VATdeclaration happenings, fairs and merchandising for the period from the 1 st of July 2009 till the 31 st of December 2009, and this before 31 of January As for 2010, with an annual turnover under , a first yearly declaration can be submitted on the 31 st of January 2011 at the latest. 13. Restriction The Administration preserves the right to adapt or withdraw this special regulation happenings, fairs and merchandising in case this system would cause abuse or serious irregularities. Special Regulation HAPPENINGS/FAIRS 7/7 1ste July 2009