On 12 December 2019, the Belgian Parliament adopted legislation implementing the EU Directive on the mandatory disclosure and exchange of cross-border tax arrangements (DAC6) and it was published in the Official Gazette on 30 December 2019. Under DAC6, taxpayers and intermediaries are required to report cross-border reportable arrangements from 1 July 2020. However, reports will retrospectively cover arrangements where the first step is implemented between 25 June 2018 and 1 July 2020.
The scope of the legislation is aligned with the EU Directive, with no extension of scope proposed for VAT, customs duties or excise duties. Where there is a reporting obligation in multiple Member States, the priority of reporting will be determined in the following order:
- Member State where the intermediary is resident for tax purposes;
- Member State where the intermediary has a permanent establishment (PE) through which the services with respect to the arrangement are provided;
- Member State which the intermediary is incorporated in or governed by the laws of;
- Member State where the intermediary is registered with a professional association related to legal, taxation or consultancy services.
An intermediary will not be required to report if the intermediary has written evidence that the same information is reported in another Member State; or there is written evidence that the same information has already been reported by another intermediary.
Non-fulfillment of reporting obligations will be penalized as follows:
Failure to report or delayed reporting:
- Gross negligence: EUR 5,000 to EUR 50,000;
- Intentional: EUR 12,500 to EUR 100,000.
Incomplete reporting:
- Gross negligence: EUR 1,250 to EUR 12,500;
- Intentional: EUR 2,500 to EUR 25,000.
The provisions include ranges of penalties for offences to allow scope for graduated penalties to be applied which can be increased with reference to frequency of offences committed.
