The importance of VAT as a general consumption tax can hardly be overestimated in the current Belgian and international tax landscape. VAT is fast becoming one of the main sources of revenue for Belgium’s federal government. Although a significant number of goods and services are exempt from it or can at least take advantage of the reduced tariffs of 0%, 6 % and 12 %, their position can change at any time, while the standard rate of 21 % is
always lurking in the background.

VAT is different from other taxes, as it is very European in its set-up with the EU’s VAT Directive providing the blueprint for the member states to work with. Through its rulings, then, the EU Court of First Instance (before European Court of Justice) has the crucial task of guaranteeing a uniform interpretation of the VAT rules across the entire EU.

Lastly, VAT is subject to a number of important reporting formalities to which the VAT return is the final piece of the puzzle. Errors in this area can lead to high retroactive claims with fines and interests that may have a major impact on the profits and losses of any business. It is therefore in the interests of companies, governmental institutions, nonprofit organisations and private individuals alike to comply with their VAT obligations.
Tiberghien advises clients on all aspects of VAT. We differ from other advisors in that:

• we have an extensive and specialised team exclusively occupied with this area of taxation;
• we always link our VAT advice to an assessment of the impact on other taxes and vice versa;
• we lend assistance in VAT compliance, such as with requesting VAT numbers, submitting VAT (and intrastat)
  returns and listings, assisting with correct invoicing, auditing ERP systems and correct
  transaction processing in terms of VAT;
• our extensive network of international contacts enables us to advise our clients quickly and
  efficiently about VAT within an international context.

The Indirect Taxes practice group also has extensive experience with the advice and support of clients in customs and energy tax matters. These taxes, too, (i) are very European in set-up, sometimes even unique to our part of the world, as is the case with customs duties, and (ii) carry heavy sanctions if not complied with, often including criminal charges. Tiberghien also differs from other law firms in this area, as we are one of the few independent law firms with extensive expertise in this domain.

• we advise businesses, public law bodies and nonprofit organisations on correct VAT structuring of
  major transactions, mainly in terms of real-estate investments;
• we assist with correct invoicing and VAT in a national and international context (cross-border
  services, import/export, etc.) and also link this to advice on customs and/or excise duties;
• we assess whether VAT can be reclaimed, mainly if a business’s VAT reporting obligation is mixed
  or partial, as is the case with financial institutions, nonprofit organisations, government
  institutions, holdings, etc.;
• we liaise with the Advance Tax Rulings Service, the central VAT administration or local VAT office and submit and negotiate tax rulings and individual decisions;
• we lend assistance with VAT, customs or excise audits and represent clients vis-à-vis the VAT
  administration;
• we provide compliance services in the field of VAT to foreign companies that need to register their
  activities in Belgium;
• …

Our Indirect Taxes practice group advises the most extensive group of clients, including:

• major Belgian and multinational companies operating in Belgium, including major groups in
  various sectors of industry: industrial production, automotive, logistics and import/export, energy,
  etc.;
• in the finance sector: financial institutions, insurance companies, investment funds, intermediaries,
  etc.;
• in real estate: we advise real estate companies (construction companies, property developers,
  intermediaries, etc.) and other businesses on major real estate transactions (investments, sales);
• in the public sector: we lend advice to government authorities as to their VAT status and assist
  them in their efforts to become independent corporations; our practice group also has extensive
  experience in advice for major public-private projects;
• in the nonprofit sector: hospitals, healthcare institutions, nonprofit organisations, etc.; we
  particularly have experience with partnerships in the care sector and the various VAT aspects to
  do with them (staff provision, cost sharing, etc.).