Belgium - Taxes

[deech123]

Here the tax law for Belgium :
for B (= business, you must have a valid KBO Kruispunt Bank Ondernemingsnummer, better know as BTW nummer, BTW Numbre, the term BTW is no langer used and has been changed to KBO)
Example : BE 0123.123.123
BE = BElgium
and then 4 characters, 3 characters,3 characters
if you want to mention this on the invoice you must write :
KBO : BE 0123.123.123 (this is the only correct way!)

Then for selling goods and buying :
Selling :
From a Belgium company to Belgium Consumer = +21% TVA
From a Belgium company to EU Consumer = +21% TVA
From a Belgium company to non-EU Consumer = +21% TVA
From a Belgium company to Belgium Company = +21% TVA (both firms get their taxes back)
From a Belgium company to EU Company other then Belgium = 0% TVA AND extra lawbook Bis number text on the invoice.
From a Belgium company to non EU Company = 0% TVA AND extra text lawbook Bis number other than the extra text mentionend to EU company.

Buying :
From an EU Company other then Belgium to a Belgium company = 0% TVA
From a non-EU Company to a Belgium company = 0% TVA

Then what about voucher/discount use.
This is very tricky!

voucher/discount :
From a Belgium company to Belgium Consumer = voucher amount must be +21% TVA INCLUDED
From a Belgium company to Belgium Company = voucher amount must be +21% TVA INCLUDED (both firms get their taxes back)
From a Belgium company to EU Company other then Belgium = voucher amount must be +0% TVA
From a Belgium company to non EU Company = voucher amount must be +0% TVA

example : you have 30 euro discount/voucher (the 30euro to B2C = 21%, so 24.79 euro + 5.21euro tax)
a private person buy something from 449 euro with a 30euro discount = 419 euro TVA included payed by the private person.
a company in Belgium buy something from 449 euro with a 30euro discount = 419 euro TVA included payed by the company, both companies get the TVA back.

a company in an EU country other than Belgium buy something from 449 euro with a 30euro discount
first of all, the price can not be 449, but must be show at : (449-21%)371.07 !
the voucher can not be 30 euro (tva included, but tva EXCLUDED) so 24.79euro
company paid = 346.28euro.
if the voucher would be miscalculate like 371.07-30euro(tax included)=341.07 euro so you get wrong profit and lose 5.2 euro

the above rule is the same for shipping cost/handling cost.
if you sell to a private person = +21% TVA
if you sell to a company in Belgium = +21% TVA (they get the tax back)
if you sell to a EU company other than Belgium = 0%
if you sell to a non-EU company other than Belgium = 0%

The way of checking out is perfect, only what must be changed is the extra text after the price.
if you show (before a company is logged in) the prices you must shown them as example : € 100 TVA included
the moment a company logged in (even a Belgium company) then you must show : € 82.64 TVA excluded
At showing the end of the shopping bag for all private persons AND Belgium companies you must show the amount in Euro with AND without TVA and the end price (the price they have to pay) MUST be TVA INCLUDED

for non Belgium or non EU company (after they logged in) you must show prices WITHOUT TVA and they must see the end price TVA EXCLUDED and also mentioned like EXCLUDED.

so the best way to perform this is by 2 extra fields for the client :
* show prices TVA included or excluded (with zones this does not work if you have private and company in the same zone)
* a option to display extra text on the invoice (for Non Belgium/ non EU country business clients)


hope this explanation is good enough :-)

[Matthieu Biart]

Hi again deech123!

Thank you for this contribution.
Since I have you arround I have some extra questions

Does any tax apply to voucher/discount coupon, shipping cost or handling cost?
And is there any specific legal requirements that PrestaShop does not fit? (e.g., during the order process).

Thank you one more time.

[deech123]

Matthieu,

I changed my post above and added several stuff like you asked

[Matthieu Biart]

Thank you for this post edition.
It is complete enough now :-)

[deech123]

no problem matthieu.

I'm planning to pull the best out of prestashop, so I think modifications are required in order to have a minimum of work.

greetz

[Alcately]

Correction on the above:

Here the tax law for Belgium :

for B (= business, you must have a valid KBO Kruispunt Bank Ondernemingsnummer, better know as BTW nummer, BTW Numbre, the term BTW is no langer used and has been changed to KBO)

Example : BE 0123.123.123

BE = BElgium

and then 4 characters, 3 characters,3 characters

if you want to mention this on the invoice you must write :

KBO : BE 0123.123.123 (this is the only correct way!)

This part is not correctly.

VAT alias 'BTW' in dutch is still existing as it always has been.
The KBO is a central point where company's or organisations need to register itself. After the registration an entrepreneur or organisation can activate the number for VAT purposes. If not activated (mostly the case for organisations) they are not VAT obligated and will therefore not add VAT onto invoices. (They can not deduct VAT either).

Once activated the name and setup still remains:

BTW BE 0123.123.123

Next to the VAT number they will have to mention where they are located by adding the RPR reference to there invoice. The RPR is depending form the location and therefore varies in between firms.

eg. RPR Antwerp

Belgium law states that both references (VAT number and RPR reference) are to be found onto each document which comes from a company.
Basically.. you'll have to add this to a legal page in your CMS or something, or on your contact page.

If a BE Company makes an invoice to any VAT applicable EU company (B2B), you do not have to charge VAT and you will have to put the following line onto your invoice to have a valid free-VAT invoice:

Dutch: "Intracommunautaire levering -Vrij van BTW bij toepassing van artikel 39bis, 1° W.B.T.W."
English: "IC delivery - Exempt of VAT by article 39bis, 1° W.B.T.W."

If a BE Company makes an invoice to any non-EU company (B2B), you do not have to charge VAT and you will have to put the following line onto your invoice to have a valid free-VAT invoice:

Dutch: "Vrijgesteld van BTW overeenkomstig art. 39 W. BTW"
English: "Exempt of VAT by article art. 39 W. BTW"

For the calculation:

+ Goods

+ Shipment

- Reduction (Vouchers)

---------------------------

= Subtotal

- Financial Reduction (used to motivate to pay quicker (if needed online))
---------------------------

= Subtotal 2 (MVH)

+ 21% VAT

---------------------------

= TOTAL (Total to be paid if you want to take advantage of the financial reduction)

= TOTAL + FINANCIAL REDUCTION (Total to be paid if you do not want to take advantage of the financial reduction)

[deech123]

this is correct what you are telling.

only the RPR is not obligatoire for (Onderneming natuurlijke persoon) only neccessary for : (Handelsvennootschappen –rechtspersonen,Burgerlijke vennootschappen en VZW’s)

And helas in prestashop you can not add extra comment lines on the invoices like the art39Bis line.

[mvalent]

the above rule is the same for shipping cost/handling cost.
if you sell to a private person = +21% TVA

That is not totally correct. If you precisely mention the charge for the stamps, you don't have to count any TVA for the stamps. You don't pay TVA when you buy stamps from the Post, when you sell those stamps to your customer you don't ask for TVA too ! I hope this is clear.

[deech123]

Mvalent,

that's also no correct.
If I buy stamps for my firm and add them in my account books, I get the 21% tva back.
so in Belgium everything you buy they sell to private persons and firms in Belgium, is always with 21% tva.

[mvalent]

Mvalent,
If I buy stamps for my firm and add them in my account books, I get the 21% tva back.

I totally disagree. Stamps are always 0% tva in Belgium, for both firms and individuals. Same for Taxipost "stamps" (for packages sending). So if you put a bill from the Post Office in your account books you get 0% tva back because you paid 0% tva ! I know for sure, we have a contract with the Post and get monthly bills for Taxipost.

Art 44 § 3 12° du Code de la TVA : http://www.becompta.be/modules/pages/compta-61.html

[deech123]

well,

that's something I did not know.
luckely enough I do not sell stamps to my customers :-)

but thx for this information.

[bonbons]

NB :

Selling From a Belgium company to Belgium Consumer or Compagny is 6% for a lot of products like foods, honey, candy and so much (but not for luxury items like caviar etc).

[lblum]

What is the obligation if my customer is a belgian company too.
Does its VAT Number have to appear on the invoice??
If yes, how do you manage it at prestashop level??

[bonbons]

Yes, your VAT number and the VAT number of your customer must appear on invoice

[lblum]

Can I ask you how you deal with this in prestashop??
Also I see you are using Hipay I am also considering working with them are you happy of their service? And customers are happy too?

Thanks for your reply!

[bonbons]

I believe it's better to speak about that in the french part of the forum because my english is too poor.

Open a new subject in the french part.

If you don't speak french because you're in flanders, we'll try in english of course...

[lblum]

Pas de problème sinon envoyez-moi un mail. Mon adresse sur mon site en construction www.doitstylish.be.

Thanks!

Lionel

[bonbons]

je pense que des éléments de réponse se trouvent à cet endroit :

http://www.prestashop.com/forums/viewthread/97658/discussion_generale/resoluafficher_la_tva_intracom_sur_la_facture_pdf

[Alcately]

Freeplus:

Yes. In Belgium 21% must be added to shipping and handling costs.

 

Please read deech123's post:

 

the above rule is the same for shipping cost/handling cost.

if you sell to a private person = +21% TVA

if you sell to a company in Belgium = +21% TVA (they get the tax back)

if you sell to a EU company other than Belgium = 0%

if you sell to a non-EU company other than Belgium = 0%

[mvalent]

Yes for shipping and handling costs you have to add 21% tax but not if you charge postage only. (Like I explained above)

 

To make it more clear :

Suppose the real postage expense (stamps) is 10 EUR and you are charging your customer 15 EUR then you have to add 21%, but if you charge just 10 EUR you don't have to add tax. Why, because, stamps are sold without tax but not enveloppes, etc.

So this is you choice... Be careful with the invoice though, don't write "shipping and handling" if you charge the exact actual postage amount without including any tax.

 

 

Freeplus:

Yes. In Belgium 21% must be added to shipping and handling costs.

 

Please read deech123's post: