What is Belgium's VAT Registration Number, and How to get it?

Every business engaging in taxable activities in Belgium must obtain a VAT registration number. VAT registration number or VAT ID is a tax identifier for your business and is required to generate VAT invoices and meet other VAT obligations in Belgium

This guide will cover:

• What is a VAT registration number in Belgium?
• Why do you need it?
• How to get a VAT registration number?
• Steps to Validate VAT ID

What is a VAT Registration Number?

When you register your business for VAT in Belgium, you receive a 10-digit number, which is also known as a VAT ID or VAT Identification number. 

When you add “BE” to the start of your company registration 10-digit number, it is your VAT registration number. The format of Belgium’s VAT number is BE0999999999 / BE1999999999

Why is a VAT Registration Number Needed in Belgium?

A VAT registration number is essential for various business operations in Belgium. Here’s why it is required:

1. Invoicing Requirements: You must include your VAT registration number on all invoices for taxable supplies and purchases. This number allows you to recover input VAT paid to vendors.
2. VAT Returns: The VAT registration number is necessary to file VAT returns and accurately declare collected and paid VAT.
3. International and EU Trade: VAT registration numbers are required to identify taxable entities in intra-EU trade. They are also essential for qualifying for VAT exemptions under the reverse charge mechanism in international transactions.

When to Apply for a VAT Registration Number in Belgium?

A business must register for VAT in Belgium if it engages in taxable activities as defined by the Belgian VAT Code. Registration is required whether the business is Belgian or foreign. Here are the key criteria and considerations:

When VAT Registration is Mandatory

You are required to register for VAT in Belgium if:

1. The activity involves the regular supply of goods or services.
2. The supply is carried out independently, not as an employee or under another person’s direction.
3. VAT applies even if the activity is not profit-driven.
4. The activity may be your primary business or a side operation.
5. VAT is applicable regardless of where the economic activity is performed.

Exceptions and Voluntary Registration for Foreign Businesses

Some foreign companies may avoid mandatory VAT registration under certain conditions:

1. Reverse Charge Mechanism: If the reverse charge mechanism applies, VAT registration might not be required if a foreign company conducts local transactions in Belgium.
2. Voluntary Registration for EU Businesses: Foreign businesses, especially those in the EU, can voluntarily register for VAT in Belgium. This simplifies the process of reclaiming VAT on expenses and purchases. It is available only to EU businesses with refundable VAT exceeding €10,000 in a calendar year.

How to Get a VAT Registration Number in Belgium

To get a VAT ID number in Belgium, businesses must have a company number from the Crossroads Bank for Enterprises (CBE). This company number is a must for VAT registration.

After obtaining your company number, submit a request for VAT registration at least two days later but before starting any VAT-relevant activities in the following way

1. Use the MyMinfin portal and log in using the identification mode for businesses. 
2. Complete the VAT Registration Form (Form 604A). Enter required business details, including tax address and bank account information.
3. Submissions can be done:
   • Online through MyMinfin
   • Via an accountant or an accredited business counter (charges apply).
4. Once your request is submitted, your team management will activate the VAT identification number linked to your enterprise number. Notifications of activation will be sent:
   • Via your eBox, including a link to MyMinfin for further details.
   • By recorded delivery if the eBox notification is not accessed.

How to Verify VAT Registration Number in Belgium

If you want to do a VAT registration number check to prevent tax fraud, you can follow the following steps:

1. Check if the VAT registration number is in the right format, “BE” followed by 10 digit number
2. Use the VIES System. The VIES (VAT Information Exchange System) is an online tool by the European Commission that checks/verifies the validity of VAT numbers across all EU member states, including Belgium.

• Visit the VIES website.
• Enter whichever VAT number you wish to verify.
• Select Belgium from the country list.
• The system will confirm if the VAT number is valid.

3. If VIES is unavailable or the information seems unclear, you can contact Belgian Federal Public Service Finance directly for verification.

Obligations of Businesses with a VAT Registration Number in Belgium

VAT is one of the most important compliance requirements for any business in Belgium. Registering for VAT comes with multiple obligations as well. Some of them include:

• Charge and collect VAT at applicable rates (6%, 12%, or 21%).
• Issue invoices with the VAT registration number and VAT details.
• File VAT returns (monthly or quarterly) to report collected and deductible VAT.
• Maintain accurate records of transactions, invoices, and VAT payments for at least 7 years.
• File Intrastat declarations and European Sales Listings (ESL) for intra-EU trade.
• Verify VAT numbers of EU trading partners to ensure compliance with VAT rules.
• Opt for special schemes (e.g., OSS or reverse charge) if applicable.
• Notify tax authorities about changes like business name, address, or activities.

Conclusion

A VAT registration number is not just any number. You need it in your day-to-day invoicing system. If your firm is audited, the government might deem all the invoices invalid if you generate them without this number. Both Belgian and foreign businesses must obtain this number before starting taxable operations. You might even have to pay fines of up to 200% of the VAT owed and interest on unpaid amounts as your trading activity would be restricted for audit. That’s why compliance with government rules is crucial.