Belgian VAT

Business Central includes Belgian extensions to the VAT reporting capabilities so that you can print VAT transaction details. You must send the following reports to the Belgian tax authorities:

• Monthly/Quarterly declaration - Use this report to create monthly or quarterly VAT declarations, depending on your company revenue.

• VAT annual listing (on paper/disk)

  Use this report to annually report all amounts invoiced for both goods and services to all Belgian companies with a registered VAT number.

• EC sales list

  Use this report to report the sales of goods to other countries/regions in the European Union. To learn more, go to About the EC Sales List Report.

You're also required to provide a printed statement detailing the VAT transactions to the Belgian tax authorities.

Nondeductible VAT

In Belgium, VAT can be fully or partially deductible. Expenses such as representation cost or purchases of cars are only partially deductible, and the transaction must specify how much of the VAT is nondeductible. For example, you create a general ledger account for fixed assets such as cars, and another account for representation cost. For each account, you specify how much of the reported VAT is nondeductible by setting the Percentage Non deductible VAT field. Then, when you post a transaction, the deductible VAT posts to the corresponding VAT account. The nondeductible VAT is added to the base amount and posted to the same account as a tangible or intangible asset.

For fixed assets, the nondeductible VAT depreciates just like the base acquisition cost of the fixed asset. You must set up separate fixed asset posting groups for each percentage of nondeductible VAT. You must do so because each fixed asset posting group posts to a general ledger account where the Percentage Non deductible VAT field specifies how much VAT must post to the same account as the fixed asset.

If you select the Incl. Non Deductible VAT field in a VAT statement line, nondeductible VAT is included in the VAT amount. The Calc. and Post VAT Settlement report adds the nondeductible part of that amount to the Non Ded. VAT Amount and Non Ded. Source Curr. VAT Amt. fields in the resulting VAT entries.

Multiple VAT numbers for customers

The feature for using multiple VAT registration numbers for customers, including adding different VAT Registration Numbers, VAT Business Posting Groups, and General Business Posting Groups for addresses in another country, are available in the Belgian localization. To learn more, go to Multiple VAT registration numbers.

In addition to different VAT Registration Numbers, VAT Business Posting Groups, and General Business Posting Groups, businesses using the Belgian localization also need to work with the Enterprise No.. When you open the Alternative Customer VAT Registration page, you can add the Enterprise No. for the customer if their address is in another country. After you enter this information, Business Central does the following things when you're working with sales documents:

• If the customer is from Belgium and the ship-to address is in Belgium, the Enterprise No. comes from the Customer card.
• If the customer is from Belgium and the ship-to address isn't in Belgium, the Enterprise No. is removed.
• If the customer isn't from Belgium and the ship-to address is in Belgium, the Enterprise No. comes from the Alternative Customer VAT Registration page.
• If the customer isn't from Belgium and the ship-to address isn't in Belgium, the Enterprise No. isn't available.

Related information

Belgium Local Functionality
Print Periodic VAT Reports
Set Up Non-Deductible VAT

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