21/11/15

VAT on directors’ fees: application as from 1 April instead of 1 January 2016

The Belgian VAT authorities have decided to abolish the tolerance for companies acting as directors to carry out their services without charging VAT. In practice this means that a company will not be able to charge directors’ fees without charging VAT.

It has now been announced that the tolerance will be abolished as from 1 April 2016 only.

It is still time to assess the possible VAT costs and to take preventive actions, like for instance setting up a VAT group.

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