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BELGIAN VAT ALERT

BELGIAN holding companies could now be liable to Belgian VAT following the implementation of European Law in the country.

Management services supplied to a subsidiary in another EU member state are now liable.

Previously, Belgium treated such services as liable to VAT in the recipient state by the recipient applying a reverse charge.

Paul de Beresford, a partner and VAT expert at national accountancy firm Hacker Young, said: "The implementation of European Law has cash flow implications for the recipient which can be avoided if the management services are fashioned to become advisory in nature."

For further help, contact Hacker Young on 020 7216 4600.