The Belgian VAT office is compelled to change its guidance regarding the requirements for the application of the VAT exemption on intra-community supplies.
To enable suppliers of goods or services a number of conditions are set out under the EU VAT Directive. This use of the reverse charge for VAT helps to reduce the amount of cross-border VAT compliance and recovery delays.
The conditions for the use of the reverse charge include:
- The supplier must verify that the customer has an up-to-date VAT identification number. This can be done by entering the supplied VAT number on the EU-operated VIES checking website.
- The supplier must obtain documentary evidence (shipping papers) that the goods left his/her home state for another EU-member state.
However, Belgium had been insisting on all conditions being met simultaneously. This requirement has now been changed following a ruling at the European Court of Justice in July 2012. The ECJ is the highest court of appeal on EU legislation.
