Subjecting directors-legal persons to VAT has been postponed for one year

12 Dec 2014

Following a decision of 12 December 2014, the tax administration has reversed its decision of 20 November 2014 and postponed the abolishment of the optional VAT system for directors-legal persons until 1 January 2016.


In our  Newsflash of 28 November 2014 , we announced that the VAT administration had decided, by a decision of 20 November 2014, to abolish the optional system concerning the subjugation of directors-legal persons to VAT starting on 1 January 2015.

In practice this meant that the remuneration granted to directors-legal persons should have been subject to VAT starting on 1 January 2015 and that a VAT identification number had to be requested before the end of this year.

The Cabinet of the Minister of Finance decided today to postpone the entry into effect of its decision until 1 January 2016. Thus the administrative tolerance applicable to directors-legal persons still applies during the entire year 2015.

Consequently, no request must be made before 1 January 2015 by the directors-legal persons who have, until now, opted for non-subjugation to VAT.

The directors-legal persons who already requested a VAT identification number following the decision of 20 November 2014 must immediately contact their VAT control office to demand that their requests are not taken into account in the light of this postponement of the abolishment of the optional regime.


> Action point

The directors-legal persons do not need to register for VAT before 1 January 2015. If an identification number has been requested since 20 November 2014, you should contact the competent VAT control to demand that the request is not taken into account.