The Professions and the Vat Amounts You Can Think Of
More and more holders of liberal professions are buying their car (new or used) abroad, thanks to the Internet, convinced that it is cheaper there. But is this so, given the VAT they will ultimately have to pay?
You are not subject to VAT
Purchased outside the EU
If you buy a car (new or used) in a state outside the EU, you will pay on arrival in Belgium, at customs, entry duties (10% in principle) and 21 % VAT.
It’s up to you to pay VAT by filing a special VAT declaration (n ° 446) with the customs office of your choice (RD n ° 46), whether the car is for professional or private use and purchased from a professional seller or from an individual, whatever. Using the independent contractor tax calculator happens to be perfect in this case.
If you buy a car that is no longer new (more than six months old and more than 6,000 km on the odometer) from a professional seller established in another EU state, this seller will in principle charge you foreign VAT (at an individual, you buy automatically without application of VAT within the EU). However, if you intend to use the car (also) for professional use, you will have to pay Belgian VAT yourself in two cases.
- Exceeding the ceiling
If this purchase makes you exceed the ceiling of 11,200 € for purchases of goods made in another Member State during the current calendar year or the previous one, you must indicate this to your foreign supplier and charge you 21% VAT Belgian on the amount of your purchase that exceeds the ceiling.
- One option
You can also choose to submit the entire purchase price of the car to Belgian VAT, which can be advantageous if the foreign VAT rate is higher than the Belgian rate.
In these cases, inform your local VAT office of the situation. This will give you a VAT number that you will communicate to your foreign supplier. You will also need to file a special VAT return which will serve as the basis for paying VAT.
You are subject to VAT
Purchased outside the EU
You will then pay import duties (10% in principle) and 21% VAT at customs.
Purchased new in another EU state
You will then pay the Belgian VAT due via your periodic VAT return, whether your use is professional or private and the seller a professional or an individual.
If you buy a car that is no longer new in another EU state, you will in principle also pay VAT via your periodic VAT return. If your use will only be private and you therefore do not give your Belgian VAT number to the seller, the latter will charge you foreign VAT. If it is an individual, no VAT (Belgian or foreign) is due.
To get back?
You can recover a maximum of 50% of the VAT paid, through your VAT declaration. If you only allocate the car for example 40% to your profession, you will only be able to recover 40% of the VAT. The burden of proof of the amount of professional use of the car falls on you.