VAT changes in the transport industry – Belgian VAT to be invoiced to non-EU VAT payers?

VAT changes in the transport industry – Belgian VAT to be invoiced to non-EU VAT payers?

07 December 2017

Due to modifications to Royal Decree No. 57 transport services rendered to non-EU VAT payers now have to be invoiced with Belgian VAT if the entire route is located in Belgium.

Transport services in a B2B relation

As a rule, transport and ancillary services in a B2B relation are deemed to be located where the recipient of the service is established, implying that Belgian VAT is never due in case such services are rendered to recipients established outside the EU.

Exception

Royal Decree No. 57 provided for an exception to this rule if the actual use and enjoyment took place outside the EU, in which case the service was deemed to be located outside Belgium.

Transport services rendered to non-EU VAT payers from now on subject to Belgian VAT

Since 23 November, according to a modified Royal Decree No. 57 Belgian VAT needs to be invoiced to non-EU VAT payers if the entire route is located in Belgium. Also in the case where the customer is established in Belgium, the transport service can only be invoiced without Belgian VAT if the route is located entirely outside the EU. Note however that other VAT exemptions may also still apply.