Solutions

Tax and Legal Services

Public Sector

Ever since the introduction of the new legislation of Article 6 of the VAT Code of July 1, 2007 – which has been altered numerous times since then – a lot has changed for the Belgian governments. In general it can be said that the VAT duty has been extended.

Only when the government acts effectively as a government, and thus doesn’t operate as competition for the private market, a government is not subject of VAT taxation. Some activities however are always subject to VAT.

VAT is relatively new for most public organisations and therefore few organisations have a vast experience in interpreting the law and understanding the formalities needed to comply. On top of that the legislation is constantly evolving and changing which complicates the process and procedures for public organisations.

Deloitte can help public organisations to comply with the legislation and to understand which activities are subject to VAT and which activities aren’t. VAT compliance is also dependent of the choice of legal entity in which a certain activity is held. Deloitte can assist public organisations in optimizing the use of legal entities.