Belgium is to require foreign public transport companies to register for VAT, and charge a proportion of Belgian VAT on the price of their tickets.
From 1 January, non-Belgian coach and taxi drivers transporting paying passengers across Belgium will be required to register for VAT with the Belgian tax authorities. They will then be required to submit special quarterly (annual for small carriers) VAT returns and pay 21% Belgian VAT. The VAT should be calculated on the proportion of the journey in miles across Belgium.
There is a limited administrative requirement for carriers with an annual turnover of less than €125,000. Carriers will be able to deduct any VAT on fuel purchases in Belgium.
Whilst such VAT registrations are an option for all EU member states, very few of these states enforce it due to the low expected tax revenue from this measure.
