SME Scheme – General features
Exemption
It is possible to opt for the SME scheme in Belgium.
Transactions excluded from the SME scheme
The following transactions exclude the taxable person from the SME scheme for all his activities:
- Works of construction (except for a specific category of natural persons covered by a special regime (essentially for services intermediated by platforms));
- Restaurant or catering services for which he is required to use a cash register system;
- Non-occasional supplies of used materials, used materials that cannot be reused as they are, industrial and non-industrial waste, recovered waste, partly processed waste and scrap.
A VAT Grouping is not eligible for the special scheme for small enterprises.
Transactions excluded from the special scheme (taxable persons may continue to benefit from the special scheme for their other transactions covered by that scheme):
- Supply for consideration of new buildings constructed or acquired with the application of VAT by occasional taxable persons or by taxable persons who do not usually do so;
- Granting, assignment or reversion of rights in rem, other than ownership, in immovable property, by occasional taxable persons or by taxable persons who do not normally do so;
- Occasional supplies of new means of transport to another EU Member State for consideration;
- Supplies by a fisherman of the proceeds of his activity to the communal banks of the ports of disembarkment;
- Supplies of manufactured tobacco (cigarettes, rolling tobacco, etc.);
- Supply, for a period of less than 3 months, of furnished accommodation in hotels, motels and establishments with a similar function where paying guests are accommodated (except for a specific category of natural persons covered by a special regime (essentially for services intermediated by platforms));
- Transactions carried out in a concealed manner (undeclared transactions and illicit transactions).
National annual threshold
The information on the national annual threshold is available on TEDB.
Domestic SME scheme
Simplified VAT obligations
A small enterprise established in Belgium who applies the SME scheme in Belgium only (domestic SME scheme) is released from the following VAT obligations:
- to submit periodical VAT returns
Cross-border SME scheme
The cross-border SME scheme applies in the following situation(s):
- The small enterprise applies the SME scheme in other Member States than the Member State of establishment, or;
- The small enterprise applies the SME scheme both in the Member State of establishment and in other Member State(s).
Simplified VAT obligations
The VAT registration in each Member State where the small enterprise applies the SME scheme is replaced by a single prior notification to be submitted in the Member State of establishment.
The periodical VAT returns are replaced by a single quarterly report for all Member States to be submitted in the Member State of establishment.
Currency
The values of supplies of goods and services to indicate in the prior notification, in the update to a prior notification and in the quarterly reports must be in EUR.
Way of submission
The prior notification, the update to a prior notification and the quarterly reports should be submitted by electronic means on this page.
Additional simplified VAT obligations
Exempt small enterprises applying the cross-border SME scheme in Belgium are released from the following VAT obligations:
- to issue full invoices for B2B supplies
Loss of simplified VAT obligations
Non-compliant small enterprises may be required:
- to VAT register
- to submit periodical VAT returns
Transitional period
Belgium applies a transitional period in case the national annual threshold is exceeded during the current calendar year. The transitional period applicable can be found in TEDB database.
Practical examples of the application of the transitional period and its consequences are available in the Explanatory Notes.
Quarantine
Quarantine period in case of exclusion from the SME scheme
Small enterprises excluded from the SME scheme in Belgium are not able to benefit from that exemption during a quarantine period.
You can consult the quarantine period applicable in Belgium on TEDB database.
Practical examples on the application of the quarantine period and its consequences are available in the Explanatory Notes.
Quarantine period in case of voluntary departure from the SME scheme
Small enterprises who decide to voluntarily leave the SME scheme in Belgium are not able to benefit from that exemption during a quarantine period. You can consult the quarantine period applicable in Belgium on TEDB database.
Appeals
Domestic SME scheme
Appeals should be addressed to your Member State of establishment (MSEST).
Cross-border SME scheme
Member State of establishment (MSEST)
Appeals related to the following topics should be addressed to MSEST:
- Union annual turnover
- Prior notification, correction and update to a prior notification
- Quarterly reports and correction of a quarterly report
- Exclusion for exceeding the Union annual turnover
Member State of exemption (MSEXE)
Appeals related to the following topics should be addressed to MSEXE:
- National annual turnover
- Denial to access the cross-border SME scheme in MSEXE
- Loss of simplified VAT obligations in respect of MSEXE
- Exclusion for exceeding the national annual threshold/sectoral threshold in MSEXE