When doing business whether locally or internationally it is common for a seller to provide an invoice to a buyer, for the goods or services being sold. The invoice serves as record of the transaction and is important for tax purposes. As such, invoices in Belgium should be properly issued and meet all the necessary requirements. Below we cover the rules for issuing a tax invoice in Belgium as well as, e-invoicing, and Belgian Vat rules.
Belgium Invoice Requirements
In all Business-to-Business transactions an invoice must be issued if goods or services are supplied to a business or legal entity. In Belgium, all invoices issued are required to contain the following basic information:
- Date the invoice is issued
- A unique invoice number
- Full name and address of the supplier
- VAT number of the supplier
- VAT rate applied
- A description of the goods or services rendered
- Unit price of the goods supplied or services rendered
- Full name and address of the customer;
- The total gross amount of the invoice
- VAT amount payable
- The total net amount of the invoice
Belgium VAT Invoice Requirements
The Belgian rules for VAT invoices are similar to that of the European Union VAT Directive and its invoicing requirements. All EU member states are obliged to incorporate the EU VAT Directive rules into their local VAT regulations, however certain elements are optional.
According to the directive member countries should impose the following rules:
- A standard VAT rate of at least 15%
- 2 reduced rates on goods may also be applied, which must be a minimum of 5%
The following VAT rates apply in Belgium:
- Standard VAT rate – on all taxable goods and services is 21%
- Reduced rate – on certain goods and services (like construction on new buildings) is 12%
- Further reduced rate – on certain goods such as foodstuffs, some pharmaceutical goods and domestic transport is 6%
- Zero rate – a zero rate is applied to certain goods and activities such as local community transportation, some newspapers, and particular recycled goods.
E-invoicing in Belgium
Invoices are an important document for all transactions and in Belgium all VAT-taxable traders are required to issue an invoice for all goods and services that are not VAT exempt. With many countries around the world looking to implement and standardize the use of e-invoices, Belgium is no different. It is projected that e-invoicing will be the norm in Belgium by the year 2025.
With the implementation of e-invoices the Belgium Tax authorities anticipate that e-invoicing will be more important and provide more transparency, especially in all international transactions.
The current use of e-invoices:
- Businesses are in certain circumstances able to outsource invoicing operations to 3rd parties.
- Businesses are able to issue e-invoices as long as the recipient is willing to accept it.
- Currently e-invoices are equivalent to paper invoices and the national tax authority does not require businesses to provide notifications.
The Advantages of Outsourcing B2B Invoicing
When doing international transactions, it is important that you comply with tax regulations in the place of your business. Invoicing clients in another country can be a complicated process, which is why many businesses are choosing to outsource this function. Some of the benefits of outsourcing B2B invoices in Belgium include:
- Record – INS Global has implemented a system that keeps an organized record of each transaction you make. This let’s you have an easily accessible record of all transactions that you performed.
- International Payment Methods – INS global allows you to make payment in different currencies. This makes it easier for your business to perform such transactions, without incurring additional transfer costs.
- Saving in Time and Money – INS Global has implemented a system that makes payments faster and it saves costs because there are no hidden costs involved. Having internal staff and remitting international payments can end up being very costly.
Who Should Outsource Invoicing in Belgium?
Any company wishing to perform a transaction with a business or client in Belgium, can use an outsourced invoicing service. If your business is not able to issue an invoice or collect payment in Belgium, this provides a simple solution to the cross border transaction. The structured format offered by INS Global allows your business to prevent duplication, improve transactional accuracy and ensure that your payment cycle has been streamlined.
Invoice Clients in Belgium
INS Global makes invoicing in Belgium a simple process for your business. Get in touch with INS Global and let our invoicing experts determine exactly what your business needs. Through our streamlined process and experience, we are able to adapt our comprehensive invoicing solution to your technical requirements. Get in touch with us right away and let us help you get started.