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Stocking goods in Flanders
The region’s population has a high level of education, and the same goes for the general knowledge level. Highly skilled (technical) workers are essential to keeping our new and existing activities up and running in Puurs. Add to that the dedicated, results-driven mindset of people in Flanders,
and we have exactly what it takes to be successful in the pharmaceutical industry.
- No legal entity in Belgium.
- You own stock (finished goods), stored in Belgium with a third-party logistics provider.
- No other activity in Belgium.
- Under Belgian tax law, you have a Belgian establishment.
- If your country has signed a double tax treaty with Belgium, a pure stock is not a taxable Permanent Establishment (PE).
- Within the EU: only VAT liabilities.
- Outside the EU: VAT and customs liabilities.
- Storage of goods is never a PE for VAT purposes.
- VAT registration is needed if you put the goods into free circulation in the EU (non-EU businesses need to appoint a VAT representative – global or individual; EU businesses can apply for direct registration).
- To avoid pre-financing of import VAT, an import VAT deferral license (an ‘ET 14.000 license’) without any cash guarantee can be used.
However, supply of goods to Belgian, EU or non-EU customers is generally subject to VAT:
- VAT exemption possible for intra-EU supply of goods and export supplies to non-EU;
- reverse-charged or local VAT if goods remain in Belgium.
- Bonded warehouse benefits apply.
- Customs and excise duty implications (import/storage formalities, valuation, paperless declarations and electronic communication).
- Input VAT can be deducted via the periodic VAT return as a Belgian VAT registration occurs.
Bonded warehouses allow importers to postpone payment of import duties and import VAT until the final destination of the goods is known. The bonded warehouse can perform customs-approved forms of handling to add value, such as re-packaging, conservation, testing and marketing. Companies with bonded warehouses across the EU can obtain a single EU authorization. This enables the smooth transport of goods between bonded locations.