VAT change for legal entities acting as directors in companies deferred until 1 January 2016

In our VAT newsflash of 27 November 2014, we informed you that, as of 1 January 2015, legal entities would no longer be able to choose whether their services as directors, administrators or liquidators of a company, should or should not be subject to VAT. As from that date, legal entities would be required to apply VAT to such services under the new Belgian administrative decision n° ET 125.180 dd. 20 November 2014.

However, after the publication of this administrative decision, the Belgian VAT authorities have taken note of the fact that this obligation to apply VAT will, in various sectors, give rise to practical difficulties and interpretation issues. The Belgian VAT authorities acknowledge that it is, in these circumstances, difficult for these taxable persons to take the necessary steps to comply with this decision in such short notice.

The entry into force of the administrative decision n° ET 125.180 will, therefore, be deferred with one year until 1 January 2016. The Belgian VAT authorities will, in the meantime, examine the interpretation issues and intend to publish an administrative clarification before 1 January 2016.

As mentioned, the new administrative decision does not entail changes for natural persons acting as directors, administrators or liquidators of a company. They are still considered as non-taxable persons for such services.