Thes European Court of Justice recently reviewed the VAT liability of fiscal representative to any VAT default by their clients. The Belgian VAT authorities offer a special import VAT deferment scheme for companies importing into Europe for the first time.
According to new Rule there is no need for any cash flow payment of VAT. Instead of that the importer appoints a local entity to represent the company with the Belgian tax authorities. This fiscal representative brings in the goods on their VAT number. As there is reverse charge relief for local sales, and intra-community supplies are VAT exempt, therefore, there should be no output VAT on the sale.
