Postpone the payment of import VAT in Belgium
In Belgium, businesses can benefit from two different mechanisms to defer or postpone the paying VAT:
Postpone VAT Accounting
postponed VAT accounting mechanism allows eligible businesses to defer the payment of import VAT at the time of customs clearance. Instead of paying the import VAT upfront, businesses can defer the payment until a later date (usually the 15th day of the month following the month of import). This mechanism requires prior approval and is subject to certain conditions, such as having a good track record of tax compliance and providing a guarantee to the Belgian tax authorities.
Import VAT allows businesses to postpone the payment of import VAT by declaring the VAT due in their periodic VAT returns, instead of paying it at the time of customs clearance. This mechanism is available to all VAT-registered businesses in Belgium and applies to imports from both EU and non-EU countries.
To benefit from the postponed VAT registered mechanism in Belgium, businesses must meet the following requirements:
- Be VAT registered in Belgium.
- Declare the import VAT in their periodic VAT return.
- Have a valid EORI number.
- Keep proper records of their imports and VAT declarations.
- Comply with all other VAT obligations.
It is important to note that the import VAT deferral and postponed import VAT mechanisms do not exempt businesses from paying import VAT. Rather, they provide a mechanism to defer or postpone the payment of import VAT, which can help with cash flow management. Additionally, both mechanisms are subject to certain conditions and requirements, so it is important to consult with a tax professional or the Belgian tax authorities to determine eligibility and ensure compliance.