If you rent out your house or apartment as a vacation home in Belgium, keep in mind that as of July 1, 2022, you may be liable for VAT and will have to comply with the necessary VAT formalities.
In our previous article We have already extensively explained the new regulation on the rental of furnished accommodation. The VAT authorities recently published a circular to give lessors more clarity on when VAT should or should not be charged.
We summarize them for you in a few "'Frequently Asked Questions'.
What if I rent out an unfurnished apartment/holiday home?
If you rent out an unfurnished apartment/holiday home, this rental remains exempt from VAT. And this regardless of the duration of the agreement.
What if I only rent without ancillary services?
For example, if you rent out an apartment by the sea where only at the beginning of the visit the key is handed over by the rental office, nothing changes for you. This rental remains exempt from VAT because the mere handing over of a key is not considered one of the related services.
Should related services be offered to guests at one global price?
It is of no importance whether these related services (physical reception, household linen, daily breakfast) are included in the rental price or whether they are charged separately. A rental of less than three months in which at least one of the services is provided - whether or not through the payment of a supplement - will therefore be considered a taxed service.
What if my customer has the choice of whether or not to purchase a related service?
If your customer has the choice of whether or not to purchase a related service (subject to payment of a mark-up), VAT will only be due if the customer explicitly opts for one of these services. The mere fact that these services are offered to the customer therefore does not automatically result in a VAT liability.
Is room cleaning also considered a "related service"?
Room cleaning is not considered one of the related services. Physical reception, provision of household linen and daily breakfast are.
What about the cost of water, heating and electricity?
The fixed amount charged for the consumption of water, electricity and heating always follows the VAT qualification of the furnished accommodation. If the rental is a taxed service because all conditions are met, then this fixed cost is also subject to VAT.
When is there physical reception?
A physical reception of guests only exists when the reception and assistance is ensured for at least a large part of the day. It is not required to have a reception area (e.g. reception or office). Only the physical presence of a person during the day is thus important.
So if you merely hand over the key to new guests and are otherwise only available by telephone, the condition of physical reception is not met and you will therefore not have to charge VAT.
What is meant by the provision of household linen?
This only concerns the provision of bed or bath linen. So there is no need to take kitchen linen into account.
This does not require, for example, that the beds be made; the mere provision/offering of the bed linen is sufficient to qualify as a related service.
What if I only provide breakfast on weekends or offer breakfast vouchers?
To be considered a taxable rental, a daily breakfast must be provided. If you rent out your apartment/holiday home for a week, for example, and only provide breakfast for the guests at the weekend, there is no question of a related service.
However, if you sell breakfast vouchers to guests for breakfast in a nearby brasserie, there is a related service. The breakfast is then provided by a third party (nearby brasserie), but it is still in the name and for the account (and under the responsibility) of you as a landlord.
Do you have doubts whether as a landlord you will soon be considered liable for VAT or would you like more information regarding the right to deduct VAT?
Do not hesitate to contact us here contact us with questions.
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