In order to simplify accounting and tax obligations for small businesses, the tax office provides an optional VAT exemption regime.<\/p>\n
If your annual income is below \u20ac25,000, you can request this status. For this threshold, only income subject to VAT should be taken into account, meaning income made in Belgium or in the EU.
\u200b<\/p>\n
As a Franchisee, you would not<\/b> have to do the following:<\/p>\n Collect VAT on sales (i.e., charging VAT to the clients)<\/p>\n<\/li>\n Pay VAT to the state<\/p>\n<\/li>\n Submit Periodic VAT returns<\/p>\n<\/li>\n Also, you cannot deduct VAT from your business expenses<\/p>\n<\/li>\n<\/ul>\n The benefits can be:<\/p>\n your accounting will be very simplified (you will only have to submit a yearly income tax and a yearly client listing)<\/p>\n<\/li>\n you don’t charge VAT, meaning your prices can be more competitive when selling to private individuals<\/p>\n<\/li>\n You don’t deduct VAT on your purchases > this is only interesting if you don’t have any major expenses to make in Belgium (investments, equipment, etc.).<\/p>\n<\/li>\n<\/ul>\n Annual turnover limit:<\/b> If your annual sales (as defined below) do not exceed \u20ac25,000 excluding VAT, you can opt for the small business exemption scheme. Under this system, you don’t have to charge VAT to your customers. VAT exclusion:<\/b> Under this regime, you will not have to charge VAT or submit periodic VAT returns. Eligibility requirements:<\/b><\/p>\n<\/li>\n<\/ol>\n Annual sales must not exceed \u20ac25,000.<\/p>\n<\/li>\n Certain activities are excluded (e.g. VAT unit, construction companies, provision of furnished accommodation subject to VAT, certain activities subject to VAT in the Horeca sector).<\/p>\n<\/li>\n<\/ul>\n All supplies of goods and all services that are subject to VAT when the small businesses scheme is not applied. The VAT rate used does not matter.<\/p>\n<\/li>\n Exports<\/p>\n<\/li>\n Intra-Community supplies of goods exempt from VAT<\/p>\n<\/li>\n Income from the rental of immovable property exempt from VAT<\/p>\n<\/li>\n<\/ul>\n Sale of investment goods (e.g., a car sold by the company).<\/p>\n<\/li>\n Services provided outside Belgium, such as consulting for a company established in another EU member state, are subject to the general B2B rule. This means the service is considered to be located in the country where the recipient is established.<\/p>\n<\/li>\n Services exempted under “art. 44 CTVA” (e.g. therapeutic medical services), except for VAT-exempt property rental and non-therapeutic medical services.<\/p>\n<\/li>\n<\/ul>\n\n
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\n1\/ Calculation of the \u20ac25,000 threshold for the Franchisee<\/h1>\n
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\u200b<\/p>\n<\/li>\n
\u200b<\/p>\n<\/li>\n\n
1.1 Income to be included and excluded<\/h2>\n
\u2192 Included in the calculation:<\/h3>\n
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\u2192 Excluded from the calculation:<\/h3>\n
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