{"id":15641,"date":"2024-05-21T10:21:06","date_gmt":"2024-05-21T08:21:06","guid":{"rendered":"https:\/\/fix-blog.local\/blog\/subject-to-vat-now-what\/"},"modified":"2024-05-21T10:21:06","modified_gmt":"2024-05-21T08:21:06","slug":"subject-to-vat-now-what","status":"publish","type":"post","link":"https:\/\/www.accountable.eu\/en-be\/blog\/subject-to-vat-now-what\/","title":{"rendered":"What to do if you suddenly become subject to VAT"},"content":{"rendered":"\n

When you first started your freelance business in Belgium, you might not have been expecting to make a considerable amount of money. That VAT-registration threshold of \u20ac25,000 may have initially seemed very distant. But what happens if you\u2019re fast approaching that limit, or you’ve just exceeded it? Should you start charging VAT immediately? And what needs to happen for you to be able to do that? In this article, we\u2019ll guide you through the questions and steps to take.<\/strong><\/p>\n\n\n\n

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  1. When do you become subject to VAT?<\/a><\/strong><\/li>\n\n\n\n
  2. What to do if you become subject to VAT: a step-by-step plan<\/a><\/strong><\/li>\n\n\n\n
  3. How does VAT declaration and payment work?<\/a><\/strong><\/li>\n\n\n\n
  4. Worth knowing<\/a><\/strong><\/li>\n<\/ol>\n\n\n\n

    When do you become subject to VAT?<\/h2>\n\n\n\n

    In principle, all self-employed people in Belgium are subject to VAT (with the exception of a selection of paramedical liberal professions).<\/p>\n\n\n\n

    When you started your activity, you chose to request a VAT exemption for small businesses. That meant that until now, you didn\u2019t have to charge VAT on your sales<\/strong>. However, once you achieve a turnover of <\/strong>more than \u20ac25,000 per year, you no longer qualify for this exemption, and you become subject to VAT.<\/p>\n\n\n\n

    If you work with an accountant, they\u2019ll be monitoring this limit for you. But that doesn\u2019t mean it\u2019s not also your responsibility to keep an eye on your turnover <\/strong>and take immediate action when you earn more than \u20ac25,000 per year<\/strong> from your self-employed activity.<\/p>\n\n\n\n

    \ud83d\udca1Accountable tip:<\/strong> Our app tells you precisely when you\u2019re about to exceed the \u20ac25,000 mark and become subject to VAT, allowing you to avoid an unpleasant surprise.<\/p>\n\n\n\n

    Extending your activity to offer certain other services may also mean you need to start charging VAT. In the following three sectors, you must always charge VAT:<\/strong><\/p>\n\n\n\n

    \ud83d\udc77 Construction work (construction, landscaping, sanitary work, etc.)<\/p>\n\n\n\n

    \u267b\ufe0f Certain waste treatment activities<\/p>\n\n\n\n

    \ud83e\uddd1\u200d\ud83c\udf73 Catering activities with a registered cash register system (a \u2018white\u2019 cash register)<\/p>\n\n\n\n

    Finally, it\u2019s also possible that, as a liberal professional, you start to carry out new activities for which you must charge VAT. If this is the case, you become subject to mixed VAT<\/strong>.<\/p>\n\n\n\n

    What should you do if you become subject to VAT?<\/h2>\n\n\n\n

    Let’s take an example: suppose that in mid-March, you issue an invoice that takes you over the \u20ac25,000 threshold. What exactly should you do? Let’s look at this step by step.<\/p>\n\n\n\n

    1. Subject to VAT from the first euro<\/h3>\n\n\n\n

    Don\u2019t wait until the start of a new quarter to meet your VAT obligations. From the first euro that exceeds \u20ac25,000, you\u2019re subject to VAT.<\/strong> That means you must collect VAT, even if this happens in the middle of a quarter.<\/p>\n\n\n\n

    2. Inform the VAT authorities<\/h3>\n\n\n\n

    You (or your accountant) needs to immediately<\/strong> inform the VAT authorities that you are no longer exempt from VAT. You do this by completing form e604B via MyMinfin<\/a> (\u2018modification of VAT activity\u2019).<\/p>\n\n\n\n

    3. What about your VAT number?<\/h3>\n\n\n\n

    You already have a VAT number, because when you became self-employed you were given a unique company number. The VAT number is therefore identical to this company number, but preceded by \u2018BE\u2019.<\/p>\n\n\n\n

    When you started your self-employed activity, you already activated this VAT number<\/strong>, even though you opted for the VAT exemption scheme for small businesses. You actually needed your VAT number to submit your client listing, among other things.<\/p>\n\n\n\n

    Your VAT number is therefore already activated, but you still mustn\u2019t forget to inform the VAT authorities (see previous step).<\/p>\n\n\n\n

    4. Start collecting VAT<\/h3>\n\n\n\n

    As a VAT-registered entrepreneur, you must collect VAT from your customers and remit it periodically to the tax authorities<\/strong>.<\/p>\n\n\n\n

    From now on, your VAT number must appear on every invoice and you also need to apply the correct VAT rates<\/a> on your products and\/or services.<\/p>\n\n\n\n

    As always, you must keep all sales invoices up to date to be able to calculate the amount of VAT you\u2019ve collected. You also need to keep purchase invoices to be able to recover the VAT paid.<\/p>\n\n\n\n

    The amount of VAT you must pay to the state is the difference between the VAT you invoiced to your customers and the VAT you paid to your suppliers.<\/p>\n\n\n\n

    \ud83d\udca1Accountable tip: <\/strong>Afraid of making mistakes? Simply scan all your incoming and outgoing invoices with the Accountable app<\/a> and we\u2019ll prepare a flawless tax return for you. It can be as simple as that.<\/p>\n\n\n\n

    5. Your first VAT declaration<\/h3>\n\n\n\n

    Some entrepreneurs submit a VAT return every month, but as a self-employed person who has just become subject to VAT, a quarterly declaration is sufficient.<\/p>\n\n\n\n

    This means you need to submit the VAT return by the 20th day of the month following the quarter<\/strong> in which you collected the VAT. So, before April 20, July 20, October 20 and January 20<\/strong>.<\/p>\n\n\n\n

    In reality, these dates may vary each year. They’re never earlier, but sometimes you have a little more time. Check this article <\/a>for specific dates for this year.<\/p>\n\n\n\n

    How does VAT declaration and payment work?<\/h2>\n\n\n\n

    Suddenly becoming VAT registered may seem complicated, but don’t worry, with the following action plan and Accountable, your first VAT return will be easy to manage.<\/p>\n\n\n\n

    Follow these steps to correctly submit your VAT return. \ud83d\udc47<\/p>\n\n\n\n

    \ud83e\uddfe Check if all purchase and sales invoices are correctly processed in your accounting.<\/p>\n\n\n\n

    \ud83d\udcbb Generate your VAT return via Accountable.<\/p>\n\n\n\n

    \ud83e\udeaa Log in to Intervat in your own name.<\/p>\n\n\n\n

    \ud83d\udcc1 Upload your files and sign the declaration.<\/p>\n\n\n\n

    \u2b50\ufe0f Pay the VAT due or request a refund.<\/p>\n\n\n\n

    Was that a bit too fast? In this article<\/a>, you\u2019ll find a detailed action plan with screenshots and a video showing exactly how to declare and pay VAT.<\/p>\n\n\n\n

    Worth knowing<\/h2>\n\n\n\n