Penalties for non-submitting EC Sales List in Belgium
Understanding the complexities of VAT obligations can be challenging, especially when dealing with intra-Community transactions within the European Union. For businesses operating in Belgium, knowing the ins and outs of the EC Sales List is crucial to ensure compliance and avoid penalties. This article aims to provide a clear and concise guide on what the EC Sales List in Belgium is, the deadlines for filing, and the potential penalties for late submissions. By the end of this article, you will have a better understanding of your responsibilities and how to stay compliant with Belgian VAT regulations.
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What is EC Sales List in Belgium ?
In Belgium, the EC Sales List declaration is an intra-Community report detailing all intra-Community sales made during one reporting period. This list includes only transactions with customers who are identified for VAT purposes in another EU Member State.
The EC Sales List is mandatory for all entities holding an active Belgian intra-Community VAT number and who have reported an amount in VAT grid 46 on their Belgian VAT return. The filing frequency of this list must match that of your VAT returns.
! However, if you are filing your VAT in Belgium quarterly, and if your intra-Community deliveries exceed a threshold of €50,000 in a quarter, you must file your EC Sales List and VAT returns monthly, starting from the month following that quarter, for a minimum duration of 12 months.
To learn more, we invite you to visit our dedicated website: EC Sales List in Belgium.
What are the deadlines for filing the EC Sales List in Belgium ?
The deadline for filing the EC Sales List is the same as for the VAT Return. This means it is the 20th of the month following the reporting period. So if you submit a monthly VAT return in Belgium, the EC Sales List for activities carried out in January will need to be submitted before February 20th. If you are on a quarterly periodicity, the deadline would be the 20th of the month following the quarter; for example, for the first quarter, the deadline is April 20th.
The EC Sales List is filed electronically on the Intervat portal.
Penalties for not submitting the EC Sales List in Belgium within the deadline
What happens if you forget to file the EC Sales List in Belgium?
Unfortunately, the Belgian administration will likely impose penalties on your company. However, you should be prepared and know how much you will have to pay.
According to Article 70, § 4, first paragraph, of the VAT Code, any violations of this Code or its implementing decrees (except those in §§ 1, 2, and 3 of Article 70) can result in a non-proportional tax fine ranging from 50 euros to 5,000 euros per offence. The fine amount depends on the nature and seriousness of the offence.
As per the annex to Royal Decree no. 44 of July 9, 2012, last amended on July 1, 2021, which sets the amounts for these fines, a delay of up to 2 months in filing the EC Sales List statement results in a fine of 25 euros per position on the EC Sales List to be declared (per EU buyer for which you made intra-community sales in the last reporting period), with a minimum of 75 euros and a maximum of 1,500 euros.
Your fine will be calculated as follows:
25 € per customer
x 3 customers
= 75 € (which is the minimum fine amount)
So the total fine you will probably receive is 75.00 €.
Penalties for EC Sales List in Belgium: Conclusion
Now you know how important it is to comply with all your VAT obligations in Belgium. Each time you do not comply or file VAT returns or other needed declarations after the deadline, you are exposed to receiving fines and penalties from the tax administration. We hope this article will help you to prepare for any potential penalties.
At Eurofiscalis, we make sure our clients never miss any deadlines. Let us help you stay on top of your tax obligations so you can focus on growing your business.
We have the necessary knowledge and experience to help you file your EC Sales Lists. With us, you can forget about the deadlines and not worry about penalties !
Rising VAT rockstar at Eurofiscalis I have a passion for unraveling the complexities of VAT regulations in the European Union (especially Benelux region). My mission is to empower readers to navigate the ever-changing VAT landscape with ease and to answear your questions in a clear and concise way.