Welcome to the 10th edition of our PwC Belgium Transport & Logistics Newsalert.
These T&L Newsalerts keep you updated on recent developments, news and trends within the sector.
Enjoy the read!
This report gives fresh insights into the key economic regions and countries in Africa. It takes a closer look at the demographic and economic potential, the business environment, trade and logistics and transport infrastructure in selected countries.
Pursuant to the Royal Decree of 29 October 2013, specific criteria are introduced regarding the presumption of existence of an employment relation within the Joint Committee 140.03 for road transport and logistics on behalf of third parties.
We recommend clients working with self-employed persons to re-assess based on the above criteria whether their exposure on self-employment has increased.
It should be emphasized that this presumption is only applied until proven otherwise.
For further information contact Wendy Van Hullebusch Tel. +32 3 2593218.
The provision of the VAT identification number of the customer by the supplier was an essential condition for the supplier to exercise the VAT exemption on the intra-Community supply in Belgium.
However, following the CJEU case VSTR (C-587/10), the Belgian VAT authorities have adjusted their point of view and decided that the grant of the VAT exemption cannot be refused on the sole ground that no customer’s VAT identification number was available, provided that the other conditions are simultaneously met to exempt the intra-Community supply and the supplier acts in good faith.
Instead of clarifying the conditions to apply for the exemption for intra-Community supplies, the Belgian decision creates uncertainty.
First of all they make the application of the exemption for intra-Community supplies now even more dependent on the provision of the VAT identification number of the customer. In cases where the customer did not obtain the VAT identification number, certain strict conditions must be fulfilled in order to be considered acting in good faith in applying the exemption. However, if the required formalities are not followed, one should ask whether the supplier will then be refused to exempt its intra-Community supply and whether the VAT increased with a proportional penalty of 200% of the VAT at stake, penalty applicable if the supplier is assumed not to act in good faith, will be due.
Next to that, the decision does not define at all which measures, acceptable for the Belgian VAT authorities, a supplier should take to sufficiently demonstrate that its customer is a taxable person acting as such in the transaction at issue, meaning that the VAT authorities can still refuse the exemption if the measures and documentation provided are considered as insufficient. Based on the severe and arbitrarily attitude of Belgian VAT authorities in accepting the proof of shipment of goods to grant the exemption for intra-Community supplies, the supplier will be immediately at risk if he makes use of the tolerance if the authorities are not accepting the supplier’s “measures”.
Finally, the decision does not outline in which time-frame the supplier should provide proof of all its measures taken to ensure he did not participate in tax evasion, to obtain the VAT identification number of its customer and/or to obtain proof on the capacity of its customer.
From the above it follows that the Belgian administration does not follow the Court and even goes beyond the principles set forth in the judgement. Whereas the Court rules that Member States should allow other methods of proving the taxable status of the person acquiring the goods, the Belgian VAT administration stick to the provision of the VAT identification number of the customer by adding more conditions in case the supplier fails to provide the number.
Businesses should be mindful that where reasonable and fully documented measures have not been taken to obtain (and to check) the VAT identification number of the customer, the application of exemption in such a scenario is likely to be denied. They should keep in mind that intake and regular update checks should be performed not only on the taxable status of the customers they contract with, but also on the bonafide VAT compliance status of their customer and the related conducted transactions at stake. In the case a VAT identification number of the customer would not be available, the current decision of the VAT authorities is more a box of Pandora than an valuable alternative for the supplier to apply the exemption in consent with the VAT authorities.
Please contact Ine Lejeune, ITX Partner (+32 9 268 83 00), Eric Schmitz, ITX Director (+32 3 259 32 63) or Sibylle Vandenberghe, ITX Senior Manager (+32 9 268 83 22) in case you would like to have more information on this topic.
Intersections is a quarterly analysis of global merger and acquisition (M&A) activity in the transportation and logistics industry that provides an overview of the most recent M&A results and our expectations for future deal activity.
Want to know more? Download the full Intersections quarter 2 2013 analysis.
You can also launch the data explorer for a deeper dive into the data.
In today’s competitive airlines industry, travellers are expecting airlines to behave more like retailers and less like a mode of transportation. Airlines can successfully create more value by adopting retail customer service approaches that address five key behaviours exhibited by flyers. This report highlights enhancers derived from various consumer behaviours, such as balancing technology, listening to feedback, improving comfort, elevating connectivity and bundling fees, based on input from more than 2,000 business and leisure flyers globally.
According to this analysis, flyers are increasingly making purchase decisions based on a wide range of features and value enhancers, from extended seat space options and priority security line access to mobile ticketing and inflight Wi-Fi availability. Nine segments across business and leisure flyers, ranging from the elite focused, to the middle-of-the-road business traveller to a deal-seeking, leisure segment, all have distinct travel preferences and are willing to pay for different amenities.
Studying the individual needs of these nine flyer segments can help airlines better rank their product and service features to identify additional opportunities and bolster top-line growth and bottom-line results.