PDF, 190.87 Kb - Belgium

KINGDOM OF BELGIUM
Federal Public Service
Foreign Affairs,
Foreign Trade and
Development Cooperation
Protocol Directorate – P1.1
CIRCULAR NOTE
TAX SYSTEM FOR THE VEHICLES
OF THE DIPLOMATIC MISSIONS AND THEIR PERSONNEL MEMBERS
1 December 2012
The Federal Public Service Foreign Affairs, Foreign Trade and Development Cooperation
presents its compliments to the diplomatic missions established in Belgium and has the honour
of informing them of the new general tax dispositions on vehicles for the above-mentioned
missions and their privileged personnel.
The Federal Public Service Foreign Affairs, Foreign Trade and Development Cooperation
takes this opportunity to renew the assurance of its highest consideration for the diplomatic
missions established in Brussels.
The following text is a translation. If there is any doubt only the Dutch or French
version are authoritative.
To the diplomatic missions
established in Brussels
Egmont Karmelietenstraat 15, B-1000 Brussels
Tel. +32 2 501 81 11 • E-mail: info@diplobel.fed.be • www.diplomatie.be

TABLE OF CONTENTS
1 MEANS OF TRANSPORT QUALIFYING FOR TAX EXEMPTION FOR OFFICIAL
AND PERSONAL USE
2 MEANS OF TRANSPORT EXCLUDED FROM TAX EXEMPTION FOR OFFICIAL AND
PERSONAL USE
3 TAX SYSTEM FOR OFFICIAL VEHICLES
3.1. Persons entitled to tax exemptions and extent of entitlement;
3.2. Procedure;
3.3. End of VAT exemption system - regularisation;
3.4. End of exemption system on import duties - regularisation.
4 TAX SYSTEM FOR VEHICLES FOR PERSONAL USE
4.1. Persons entitled to tax exemption - terms and conditions;
4.2. Number of cars for which one can obtain exemption while holding office
in Belgium - restrictions;
4.3. Term during which the exemption applies - regularisation;
4.4. Procedure;
4.5. End of VAT exemption system - regularisation;
4.6. End of exemption system on import duties - regularisation.
5. ADMINISTRATIVE REGULARISATION WHITOUT PAYMENT:
5.1. In cases of force majeure;
5.2. In cases of theft;
5.3. When title holder passes away.
6. GENERAL
6.1. Vehicle maintenance and repairs;
6.2. VAT on indemnification pursuant to an accident
7. USEFUL ADDRESSES
8. COMING INTO FORCE
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1. MEANS OF TRANSPORT QUALIFYING FOR TAX EXEMPTION FOR OFFICIAL AND
PERSONAL USE
1.1. Passenger vehicles and dual-use cars (estate cars);
1.2. Minibuses (vehicles having a maximum of eight passenger seats in addition to the
driver’s seat);
1.3. Pick-up vehicles in the form of delivery vans (permissible maximum mass of less
than 3,500 kg, including maximum loading capacity); with a driver’s compartment
consisting of a solid and separate construction providing seating for the driver and
passenger(s), and fully separated load-bed that is reserved for luggage and goods;
with an open and fixed load-bed having a flat surface, without anchorage, points of
attachment or fastening for seats, benches or safety belts. The load-bed may be
equipped with a tailgate that can be lowered and a removable cover in plastic or PVC
or, alternatively, a tarpaulin covering a metal frame. (In some cases pictures of the
models are provided);
1.4. motorcycles.
2. MEANS OF TRANSPORT EXCLUDED FROM TAX EXEMPTION FOR OFFICIAL AND
PERSONAL USE
All other means of transport not listed in point 1, for example:
2.1. trucks, delivery vans, coaches (vehicles having more than 8 seats in addition to the
driver's seat), caravans, camper vans, motor homes, campers, trailers, or
similar vehicles having other names;
2.2. boats and ships, regardless of the type;
2.3. helicopters and airplanes or aircraft, regardless of the type;
2.4. all types of land vehicles equipped with an engine but which, for whatever reason, are
not registered with the Vehicle Registration Service;
2.5. the following are also excluded: goods or services, accessories or components of or
that are intended for the means of transport listed here in point 2 or for means of
transport for which no ATV (*) vignette has been issued.
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3. TAX SYSTEM FOR OFFICIAL VEHICLES
3.1. Persons entitled to tax exemptions and extent of entitlement
The diplomatic missions accredited by the Protocol Directorate (referred to hereafter as
title holder) are exempt from import duty and/or from VAT on the import, or from VAT
for the purchase in Belgium or in another EU Member State, and for the lease or rent of
such vehicles that are intended for their official use (i.e. to be registered in the name of
a diplomatic mission). Such exemption can be restrictive in a number of cases, such as:
- where reciprocity requirements are not met (if this is the case, the Protocol
Directorate will always send a diplomatic memorandum to the respective diplomatic
mission with the notification that there is a derogation from the general rules
outlined in this circular note);
- the number of exempt vehicles for official use exceeds the number of diplomats in
office;
- the diplomatic mission concerned has proven debts;
- the diplomatic mission concerned systematically does not respect the traffic rules;
- it appears that the car fleet of the diplomatic mission is not or not adequately
insured;
- infringements of the tax legislation;
- etc.
3.2. Procedure
The terms, such as document, certificate, invoice, etc. used here are outlined in detail
in decision ET 111417, which is enclosed with circular note of 2 April 2012.
The following, together with the invoice, must be submitted to the Central Services of
the General Administration for Customs and Excise to be able to benefit from
exemption:
- application, in duplicate, for exemption from VAT for purchases in Belgium, which is
document 450 (official use);
- or VAT and/or excise duty exemption Certificate (Certificate 151), in duplicate, for
purchases in another EU Member State;
- or a 136 F-return to import goods from a country which is not an EU-Member State.
a. The purchase or import of vehicles needed for the direct exercise of the
real functions of the diplomatic missions is regarded as intended for official
use;
b. As regards a leased vehicle, the lease contract must be drawn up in the name
of the diplomatic mission to be able to enjoy exemption for it. In addition, the
minimum amount of the rental at the expiry of the term to which the,
statements of account or payment refers, must be EUR 123.95, excluding tax.
In this case the VAT exemption on the rental is covered by documents 450 or
Certificate 151. These documents are accompanied by a copy of the rent
agreement or the lease in the name of the diplomatic mission. Said documents
are valid for a term not exceeding 12 consecutive months. A new document
must be submitted after the expiry of such term.
When the rented or leased vehicle is purchased at a later point in time, the
above-mentioned working method is repeated, seeing that this regards property
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transfer. The regularisation term intended in point 3.3 only takes effect as of
the new owner registration date;
c. It is mandatory that these vehicles are registered in the name of the
diplomatic mission in Belgium within 30 days after the ATV (*) vignette has
been issued.
3.3. End of VAT exemption system - regularisation;
The exemption granted for the vehicle is final after a term of 3 years, which is to be
calculated as of the first time that the vehicle was registered in Belgium in the name of
the official title holder or a former (official) title holder, unless there is a reciprocitybased
provision to the contrary.
If the vehicle (purchased or imported with VAT exemption) is transferred to a person
who is not entitled to exemption before the end of a term of three years, to be
calculated as of the date on which the vehicle was first registered in Belgium in the
name of the official title holder or a former (official) title holder, the exemption
granted is reviewed and VAT must be regularised. This regularisation of the
exempt VAT, in the name by the diplomatic mission, will be calculated pro rata
temporis as based on the taxable amount at the time at which the vehicle is purchased
multiplied by the remaining number of full months (x) in the time span of three years
(x 36ths), to be calculated as of the date on which the vehicle was first registered in
Belgium in the name of the official title holder or a former (official) title holder. A
month commenced is regarded as a full month.
If the vehicle to be regularised was purchased by another (official) title holder, this
must be calculated as of the date on which the vehicle was first registered in the name
of this first title holder in Belgium.
Donating a vehicle and renting, in brief, allocating a destination to a vehicle that is not
in accordance with the official use of the mission, gives rise to regularisation (in
addition to the possibilities outlined in point 5).
There is regularisation without payment (VAT is therefore not chargeable)
when the diplomatic mission definitively exports the vehicle or sells it to an
(official) title holder if such title holder is also entitled to the vehicle
exemption system for this vehicle.
3.4. End of exemption system on import duties - regularisation.
When the temporary system of the import duties ends because the vehicle is
definitively imported into Belgium, the duties upon import must always be
regularised by paying the chargeable import duties by the diplomatic mission
as soon as the vehicle is definitively imported.
The following cases constitute definitive import:
−
−
when a vehicle imported with a temporary exemption is sold, donated, rented or
lent;
when the vehicle in question is given a destination not in keeping with official
use.
The definitive import therefore takes effect at the point in time at which the vehicle is
transferred or the diplomatic mission accords it a destination that is inconsistent with
official use. The duties for vehicles remaining in Belgium or in another EU
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Member State must be regularised in the name of the diplomatic mission as
based on the value of the vehicle at the point in time at which it is transferred
or at the point in time at which the incident leading to the regularisation
occurred. This applies, regardless of how old the vehicle is.
There will be no regularisation (no duties are therefore owed upon import) when (in
addition to the possibilities outlined in point 6) the diplomatic mission definitively
exports the vehicle, sells it to another diplomatic mission or to a person who is also
entitled to benefit from the temporary exemption system for vehicles.
4. TAX SYSTEM FOR VEHICLES FOR PERSONAL USE
4.1. Persons entitled to personal tax exemption - terms and conditions
The beneficiaries of the tax exemption, referred to as “title holders”, are persons
holding a position in a diplomatic mission, registered as such with the Protocol
Directorate and entitled to tax privileges in such capacity when purchasing the abovementioned
vehicles intended for their personal use in Belgium. Only the diplomats
and members of the administrative and technical personnel of the diplomatic
missions in Belgium qualify. Family members are thus not entitled to this!
As regards personal use, purchasing vehicles (supply or import) with exemption is
therefore strictly limited to normal use (mainly in Belgium) for the personal needs of
the title holder of the exemption and to the number stated below.
For the purposes of continuing to apply the exemption, every vehicle must be
registered with the Vehicle Registration Service in the name of the title holder of the
exemption within 30 days, to be calculated as of the date on which the ATV (*)
vignette was issued.
4.2. Number of cars for which one can obtain exemption while holding office in
Belgium - Limitations
- A diplomat is entitled in principle at the same time to two (2) exempted vehicles;
- A member of the administrative and technical personnel is in principle entitled to
one (1) exempted vehicle.
A vehicle, purchased or imported in exemption on the basis of the privileges in
Belgium, is considered to be an exempted vehicle when it is registered for less than 3
years (36 months) in Belgium in the name of the first title holder since the date of the
first registration in Belgium in the name of this first title holder.
These numbers or terms can be adjusted in the following circumstances:
- not meeting the reciprocity requirements (if this is the case, the Protocol
Directorate will always send a diplomatic memorandum to the respective diplomatic
mission with the notification that there is a derogation from the general rules
outlined in this circular note);
- the title holder has proven debts;
- the title holder concerned systematically does not respect the traffic rules;
- the title holder has not or not adequately insured his or her vehicle(s);
- infringements of the tax legislation.
- etc.
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Replacing a means of transport that was purchased or imported with exemption is only
allowed after a term of three years has expired, which term is to be calculated as of the
first time that this vehicle was registered in the name of the title holder in Belgium,
regardless of whether regularisation for this means of transport was effected with or
without payment, except in exceptional circumstances and by means of a reasoned and
accepted application submitted to the Protocol Directorate - P1.1, which will send these
applications to FPS Finance for decision.
4.3. Term during which the exemption applies - regularisation
Exemption can be invoked as of a maximum of 20 working days before the
official start of the employment until the date of the termination of the
position in Belgium. No exception whatsoever is allowed to this!
The date to be taken into account to calculate the 20 working days is the date on which
the vehicle is delivered to the owner, as this is stated on the invoice or, if this is not
stated, the actual invoice date.
If the title holder is relocated to another diplomatic or consular mission in Belgium,
then the above-mentioned numbers remain applicable, regardless of such relocation.
This relocation does therefore not lead to a new quota.
A title holder who returns to Belgium for a new position at the same mission or another
mission or post for his or her country in Belgium, only re-acquires the right to
exemption to purchase or import a vehicle after the expiry of a term of three years
after his or her vehicle(s) purchased during the earlier official term in Belgium was
(were) first registered in his or her name in Belgium.
After this term of 3 years has expired for one of the exempted vehicles the title
holder can submit an application for a new ATV vignette if the position entitles him or
her to it.
4.4. Procedure
The terms, such as document, certificate, invoice, etc. used here are outlined in detail
in decision ET 111417, which is enclosed with circular note of 2 April 2012.
The following, together with the purchase invoice, must be submitted to the Central
Services of the General Administration for Customs and Excise to be able to benefit
from exemption:
- application, in duplicate, for exemption from VAT for purchases in Belgium, which
is document 451 (personal use);
- or VAT and/or excise duty exemption Certificate (Certificate 151), in duplicate, for
purchases in another EU Member State than Belgium;
- or a 136 F return for import from a country which is not an EU-Member State.
Exemption is not allowed for leasing or renting a vehicle for personal use!
4.5. End of VAT exemption system - regularisation
VAT exemption for the vehicle is definitively acquired after 3 years, to be calculated as
of the first time registration took place in the name of the title holder or in the name of
a former (official) title holder in Belgium.
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Regularisation must take place when the title holder of the exemption transfers a
vehicle purchased or imported with exemption before the end of the term of three
years, to be calculated as of the date of the first time registration took place in the
name of the title holder or in the name of a former (official) title holder in Belgium.
This regularisation of the exemption in account of the title holder is calculated pro rata
temporis as based on the taxable amount when the vehicle was purchased multiplied
by the remaining number of full months (x) in the time span of three years (x 36ths),
to be calculated as of the date of the first time registration took place in the name of
the title holder or in the name of a former (official) title holder in Belgium. A month
commenced is regarded as a full month.
If the vehicle to be regularised was originally purchased by another (official) title
holder, this must be calculated as of the date on which the vehicle was first registered
in the name of this first title holder in Belgium.
As is the case with the sale of the vehicle, the following are also cause for
regularisation: donation of the car, renting, making it available to a person who is not
exempt or, in brief, a use that does not coincide with normal personal use by the title
holder in Belgium.
4.6. End of exemption system on import duties - regularisation.
When the temporary system of exemption from import duties ends because the vehicle
is definitively imported into Belgium, the duties upon import must always be
regularised by paying the chargeable import duties by the title holder of the exemption
as soon as the vehicle is definitively imported.
The following cases constitute definitive import:
−
−
−
when a vehicle imported with a temporary exemption is sold, donated, rented or
lent;
when the vehicle in question is given a destination not in keeping with the
personal use;
when the title holder remains in Belgium after the position has been terminated.
Definitive import therefore takes effect at the point in time at which the vehicle is
transferred or is given a destination that is inconsistent with the personal destined use
by the title holder or as of the end of the position. The duties for vehicles
remaining in Belgium or in another EU Member State must be regularised as
based on the value of the vehicle at the point in time at which it is transferred
or at the point in time at which the incident leading to the regularisation took
place. This applies, regardless of how old the vehicle is.
No regularisation with payment (no duties are therefore due upon import)
therefore applies in the following cases:
−
−
−
−
when, upon termination of his or her position, the beneficiary leaves the EU
customs territory and exports the vehicle;
when the beneficiary is relocated to an EU Member State other than Belgium to
hold a position there for which he or she is also entitled to a temporary
exemption system for vehicles;
when the beneficiary holds a position with an organisation in Belgium which
applies the temporary exemption system on vehicles and he or she requests
extension of the exemption granted;
when the beneficiary sells his or her vehicle to a (official) title holder who also
benefits from the temporary exemption system on vehicles.
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5. ADMINISTRATIVE REGULARISATION WITHOUT PAYMENT:
Subject to written justification and after examination of the dossier by the General
Administration for Taxation, there may be a decision that it is only necessary to
regularise the vehicle “administratively” (= without payment) in a number of cases,
such as:
5.1. In cases of force majeure
The vehicle for which exemption is granted is a total loss and the insurance company
has also declared it a total technical loss.
“Technical total loss” is understood to mean that the damage to the vehicle is such that
it cannot be put on the road again.
Where appropriate, a dossier containing the following details must be submitted to the
Central Services of the General Administration for Customs and Excise:
– all the vehicle's documents (to the extent that these are not also destroyed), i.e.
the original certificate of registration of the car and the original conformity
certificate;
– a copy of all documents that were drawn up substantiating the total loss of the
vehicle, for example the copy (or copies) of the assessment report(s) at the
request of the insurance company (or companies) or, alternatively, copies of the
official police reports constituting the accident or infringement, which were
drawn up by the authorities (Belgian federal or local police or the corresponding
body in the country where the accident happened) or a certificate issued by the
above-mentioned authorities confirming that an official report was drawn up.
5.2. In cases of theft
The dossier to be submitted to the Central Services of the General Administration for
Customs and Excise contains the following:
– all the vehicle’s documents (to the extent that the owner of the stolen vehicle
has them in his or her possession), i.e. the original car registration certificate
and the original conformity certificate;
– a copy of all documents that were drawn up substantiating that the vehicle was
actually stolen, for example, the copy (or copies) of the official police report(s)
constituting the theft, which was (or were) drawn up by the authorities (Belgian
federal or local police or the corresponding body in the country where the
accident happened) or a certificate issued by the above-mentioned authorities
confirming that an official report was drawn up.
– It is in any event mandatory to make a statement to the Belgian police. This
applies for a limited term, which is usually 1 month.
However, if the stolen vehicle were to be found later, then the FPS Finance will be
notified by way of the Protocol Directorate P1.1 and the situation will be reviewed.
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5.3. When title holder passes away:
The diplomatic mission must submit an application for regularisation without payment to
the Central Services of the General Administration for Customs and Excise.
6. GENERAL
6.1. Vehicle maintenance and repairs
The (official) title holder can only purchase goods or services (e.g. maintenance,
repairs, etc.) with VAT exemption for his or her exempt vehicle (ATV (*) vignette). In
that case, he or she must hand in a document of exemption together with a copy of the
registration certificate to the following:
- the supplier or person performing the services (e.g. garage owner) in Belgium
(document 450 or 451);
- the Central Services of the General Administration for Taxation upon validation of
Certificate 151.
6.2. VAT on indemnification pursuant to an accident
If, in the case of an accident, the (official) title holder is indemnified by insurance
company (of the title holder or of the opposing party), VAT exemption may not be
invoked, seeing that the costs incurred are not at his or her expense. It may
therefore not be stated on the European Accident Report that the person suffering
the damage can recover the VAT in any manner.
7. USEFUL ADDRESSES
Federal Public Service Finance
General Administration for Taxation
Central Services
International Relations
Koning Albert II laan 33, Box 25
1030 Brussels
Federal Public Service Finance
General Administration for Customs and Excise
Central Services
Koning Albert II laan 33, Box 37
1030 Brussels
8. COMING INTO FORCE
This system comes into force on 1 January 2013.
Vehicles that were already purchased with VAT exemption and any import duty
exemption are not included in calculating the quota stated in point 4.2.
Nevertheless, the regularisation term for these vehicles included in points 4.5 and
4.6 continues to apply in full force.
_________________
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(*) this vignette is the document with which the Central Services of the General Administration for Customs
and Excise notify the Vehicle Registration Service that the respective vehicle for road transport falls under a
temporary import duties exemption system and/or VAT exemption.
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