VAT declaration per month and trader country is mandatory and is done by printing an official report and submitting the VAT transaction details to the VAT authorities.
The system checks that the VAT declaration printout amounts are compliant with the applicable VAT box check rules. If corrections are needed, then you are able to manually correct the amounts by entering adjustments in the VAT declaration corrections program. The corrections will be automatically included in the finally printed and sent VAT declaration. The system also allows you to print a VAT declaration corrections report.
VAT grouping
VAT declaration can be done for a group of companies that are defined as members in a VAT group. The VAT grouping functionality allows several taxable persons/companies to be treated as one taxable entity for VAT purposes. Although these persons/companies are legally independent, they are bound to one another for financial, economic and organizational reasons.
As a result of VAT grouping, the delivery of goods and services between the group members is outside the scope of VAT, no VAT applies to these transactions, whereas the right to deduct incoming VAT is determined by the outgoing transactions of a group as a whole. I.e., VAT grouping neutralizes the VAT costs that would otherwise be incurred on intra-group transactions. Based on the VAT groups, the VAT amount is aggregated in the VAT group declaration report, which is sent to the VAT authorities for the exemption or reduction of VAT or may be required for internal purposes.
Main benefits of VAT grouping
- Neutralizing excess direct costs, because limitations of the right to deduct incoming VAT and exempt transactions do not apply.
- Reducing financial and administrative burdens related to VAT transactions.
Who can apply for VAT grouping?
Only taxable persons and foreign taxable persons with fixed establishments in Belgium can be part of a VAT group. This means that foreign taxable persons with no fixed establishment in Belgium and foreign fixed establishments of Belgian taxable persons cannot apply for VAT grouping. This territorial restriction avoids non-taxable extraterritorial transactions.
Prerequisites
The setup described in Setting up VAT declaration parameters (Belgium) must be defined.
Enquiries and printouts
- G/L transaction enquiry
- VAT box rules printout
- VAT box check rules printout
- VAT box descriptions printout
- VAT code comb checks printout
- VAT handling codes printout
- A/P VAT daybook printout
- A/R VAT daybook printout
- The G/L VAT journal – displays details for all VAT transactions in the G/L journal.
Related topics
- Create the VAT declaration report (Belgium)
- Create the VAT declaration for a VAT group (Belgium)
- Create the VAT yearly listing (Belgium)
- Manually create VAT declaration corrections (Belgium)
- Print a list of the VAT corrections (Belgium)
- About working with VAT
- Setting up VAT declaration parameters (Belgium)