Following up on our earlier post in September, we have meanwhile been informed that the Federal Government has ultimately decided past weekend to cancel the proposed introduction of an optional mechanism to subject professional leasing to VAT for notably budgetary reasons.
We believe this is highly unfortunate. The introduction of such a system could have drastically improved the competitivity of professional tenants towards foreign competitors and could have affected the real estate market on various fronts. Importantly, the system would have eliminated the need for complex structures to make the VAT-system applicable to a priori exempted transactions.
Notwithstanding the above, it cannot be excluded that the Federal Government may still introduce more minor changes to the existing real estate VAT regimes such as regarding the putting at the disposal of storage facilities. The discussions regarding these matters is still ongoing and other initiatives may still be developed.
Our Tax practice will keep you up date regarding these evolutions via our News section.
On 13 October 2017, the Brussels Parliament voted the ordinance which will substantially modify the Brussels zoning and town planning rules (the so-called Code bruxellois de l’Aménagement du Territoire, in short “COBAT” / Brussels Wetboek Ruimtelijke Ordening, in short “BWRO”).
The text will be published in the Belgian State Gazette in the coming weeks and will probably enter into force in the course of 2018.
More news to come regarding this important reform.
Bruno De Duve, who leads our Tax practice group, & Helene Mulier, summer intern, discuss in depth the recent legislative initiative of the Belgian Federal Government to allow the possibility to subject to VAT the mere letting of an immovable property to a business subject to VAT as of 1 January 2018. This draft bill may drastically improve the competitivity of professional tenants towards foreign competitors and may effect the real estate market on various fronts.
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