Belgian VAT Desk is a specialist of the construction sector. We assit foreign businesses with all the legal, tax and social formalities in Belgium.
1. Legal & tax aspects for the company
Foreign businesses from any EU country have two possibilities to register for VAT purposes in Belgium: direct registration (without a tax representative) or via a tax representative (VAT News n° 517).
We assist foreign companies through the registration process and determine which way is the most appropriate (VAT news n° 515). We also take care of all the VAT obligations: filing VAT returns, VAT accounting, etc.
1.2. Non-resident income tax for companies
1.3. Joint Liability to Fiscal and Social Debts of the Subcontractor
The main contractor has to be vigilant with its subcontractors. Payment defaut of fiscal, soical and wages debts of the latter automatically leads to withholding obligation or, failling that, to a joint liability of the main contractor. This joint liability can be transferred to the contracting authority in case of non-payment from this contractor.
As a matter of fact, Belgian and Foreign companies carrying out activities in the construction sector have to take all the required measures to avoid such a situation:
- When concluding the contract, make sure that the subcontractor does not have any fiscal and/ or social debts. Moreover, it is of particular interest to them to write out contracts, in which contractual commitments are made regarding these measures [e.g.: the consequences of notifying a joint responsibility, the duties deriving from the obligation to declare, etc.].
- Verify, when implementing the mission and before paying any invoice, that the subcontractor does not have contracted any fiscal and/ or social debts.
- In case of fiscal and/ or social debts, withhold 50% [35% for social debts and 15% for fiscal ones] from the amount and transfer it to the Belgian authorities.