Use in Belgium of a foreign employer's vehicle - The legislator changes the rules

From 1 October 2014 new documents must be kept on board any foreign employer's vehicle used by a Belgian resident.

The vehicles put into circulation in Belgium must in principle be registered with the state's vehicle inventory and are subject to the circulation tax and the tax on the entry into circulation. This is also the case for the foreign-registered vehicles put into circulation in Belgium by Belgian residents.

There are however exceptions, recently amended by a Royal Decree of 18 June 2014.

Registration is not required if a Belgian resident uses in Belgium a foreign-registered vehicle in the execution of his function (and, accessorily, for private use).

This exception used to imply that the vehicle was made available by a foreign employer to which the employee is linked by an employment agreement and that a certificate furnished by the VAT administration is kept on board the vehicle.

The latter requirement has now been eliminated by the Royal Decree of 18 June 2014. From 1 October 2014, it is now required that the two following documents must be kept on board the vehicle:

• a copy of the employment agreement;
• a document drafted by the foreign employer which indicates that the employer made the vehicle available for the employee.

> Action Point

From 1 October 2014, a copy of the employment agreement and a document drafted by the foreign employer which specifies that the employer made the vehicle available for the employee must be kept on board such vehicle.