The bill of 3 November 2019 transposes (as from 1 January 2020) three of the four so called quick fixes in the Belgian VAT Code (Council Directive 2018/19, 4 December 2018).
One of the quick fixes concerns a harmonized simplification for the shipment of goods from one member state to another under a call-off stock arrangement.
According to the modified article 12ter of the Belgian Vat Code, there will be no deemed supply of goods for consideration when a taxable person transfers goods forming part of his business assets from Belgium to another member state, but only if the following conditions are met:
- the goods are dispatched or transported to another taxable person in another member state, with a view that those goods shall be supplied there, at a later stage and after arrival, according to an agreement between these parties;
- the recipient of the goods is registered for VAT in the member state of arrival;
- the taxable person who sends his goods to the other member state:
- knows the recipient’s identity en his VAT number in that member state at the time the dispatch begins;
- has not established his business, nor a permanent establishment, in the member state of arrival:
- records the dispatched goods in a register (probably the register of non-transfers – to be further regulated in a Royal Decree);
- reports the recipient’s identity and his VAT number in the member state of arrival in his intracommunity recapitulative statement (in Belgium, and until further notice, only the VAT number needs to be mentioned);
If within a period of twelve months after arrival, the right to dispose of the goods as owner is transferred to the recipient, an in Belgium located exempt intracommunity supply of goods shall be deemed to be made by the taxable person who shipped his goods from Belgium to the other member state. The recipient shall be deemed to make an intra-Community acquisition of goods in the member state of arrival.
However, if this transfer of the right to dispose of the goods as owner is not transferred to the recipient within these twelve months, the taxable person who shipped the goods from Belgium to the other member state, shall be deemed to have made an intracommunity transfer of goods on the day following the expiry of the 12 months period. Unless the goods have been sent back to the taxable person in Belgium within this period and the latter one reports this return of the goods in the above-mentioned register.
Next to the rules in the normal circumstances where the recipient either buys the goods or ships them back to Belgium, special circumstances can occur.
The special rules remain applicable if the recipient to who the goods where shipped is replaced by another taxable person, as long as the other conditions are met. The taxable person who sipped the goods from the Belgium to the other member state needs to report this change of recipient in the above-mentioned register.
However, an intracommunity transfer of the goods will take place if within the 12 month period the conditions for the simplification scheme are no longer fulfilled:
- the taxable person who shipped the goods from Belgium to another member state transfers the right to dispose of the goods as owner to a person other than the recipient mentioned in the above-mentioned register – the intracommunity transfer will take place just before this right is transferred;
- if the goods are shipped from the recipient to another country than Belgium and they remain the property of the taxable person who originally shipped them from Belgium – the intracommunity transfer will take place immediately before the shipment of the goods to the other country;
- the goods are destroyed, lost or stolen – the intracommunity transfer will take place on the day that the goods were actually removed or destroyed, or if it is impossible to determine such a day, on the day on which the goods were found to be destroyed or missing.