During its mid-year budgetary control, the government decided to make lawyers subject to VAT as from 1 January 2014.

In concrete terms, it means that all services provided to our clients as from 1 January 2014 will be subject to a compulsory VAT charge if the services were provided in Belgium, i.e. if the client who benefited from the services is established in Belgium. The VAT rate that will be applied is the normal 21% rate (only legal aid has a 0% rate).

The VAT taxation will often be neutralized in the case of companies and private individuals that are already subject to VAT and therefore benefit from a full tax deduction. However, this measure will penalize a large category of citizens that cannot recover the VAT, entirely or partially. It mainly concerns private individuals, exempted self-employed workers (the whole medical profession), exempted non-profit-making organizations, the non-market sector, the public sector, and the banking and insurance sectors, as well as part of the real estate sector.

Needless to say, our firm is doing everything possible in order to reduce the impact of VAT on our fees for the above-mentioned sectors.

If you have any questions about this, we suggest that you contact the partner in charge of your case in order to check if some of the transitory measures stipulated in the 20 November 2013 administrative circular could be applied in your case.

Didier Grégoire
Partner

 
December | 2013

Retail & Consumer Products

> The EU Court of Justice rendered an interesting decision regarding the right of consumers to sue in the courts of their own Member State
> Introduction dans le droit belge d’une action en réparation collective


Corporate and M&A

> Le contrat de cession d’actions : mieux vaut prévenir que guérir
> Cross-border merger of cooperative companies


Real Estate & Construction

> Certificats PEB : Délai jusqu’au 1er janvier 2017
> La jurisprudence relative à la taxation en Belgique des revenus distribués par les SCI françaises rejette une fois de plus la thèse de l’administration


Competition & EU

> Premier projet de décision de l’Auditorat de l’Autorité belge de la Concurrence concernant Electrabel
> Europa heeft een recordboete van 1,7 miljard opgelegd aan een groep banken voor het manipuleren van rentetarieven


Health

> Pharmacy and pharmacists: The cost of regulatory requirements and the precautionary principle
> Un nouveau métier dans le secteur du médicament : le titulaire de l’autorisation de préparation


Public Procurement & PPP

> L’absence de signature constitue une irrégularité formelle substantielle
> Décision d’attribution et emploi des langues


Tax & Estate Planning

> Achat scindé usufruit/nue-propriété: l’administration fiscale revoit (définitivement ?) sa position
> La jurisprudence relative à la taxation en Belgique des revenus distribués par les SCI françaises rejette une fois de plus la thèse de l’administration


Innovation

> Création d’un fonds pour le financement de la recherche et du développement dans le domaine de la métrologie
> Enquête approfondie de la Commission européenne sur les exemptions fiscales belges en faveur de jeunes entreprises innovantes


Luxembourg

> Securitisation and AIFM: some useful clarifications

 

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