Sales tax

Turnover tax, also known as VAT (value-added tax), is payable on the supply of almost all products and services provided by entrepreneurs. This also applies to services provided by a notary.

The rental and delivery of real estate is in principle exempt from VAT. This seems nice but is not always the case. Indeed, when an immovable property is used for non-VAT-taxed services, the VAT deducted in the past must in many cases be repaid. If an entrepreneur supplies to another entrepreneur, this can be resolved in many cases by opting for a VAT-taxed supply or rental.

In a number of cases, sales tax is owed by operation of law. This is the case if the delivery is made by an entrepreneur and involves the supply of:

• an immovable property within two years of first occupation;
• a building plot.

The nice thing is that when a building plot is delivered or delivered before first occupation, no transfer tax is due in those situations.

When delivering to a private individual, it is usually more pleasant if no sales tax is due. When supplying to an entrepreneur, it is usually the other way around.

For more information on the concurrence of transfer tax and turnover tax, please contact us. We will be happy to advise you.