In this news item we want to inform you shortly about the VAT implications of the aforementioned VAT increase as of 1 October 2012.
The VAT rate increase will imply an additional cost for private consumers. Furthermore, the VAT increase will also increase the costs for entrepreneurs who perform (fully or partially) VAT exempt activities.
Entrepreneurs performing (fully or partially) VAT exempt activities could decide to re-charge this VAT increase to their client. In that case, the VAT increase will be quite neutral. If you are an entrepreneur who provides (fully or partially) VAT exempt activities and you will not charges these additional VAT costs to your clients, the VAT increase will imply a real increase of your costs.
According to the transitional rules it is important to check at which moment the activities (supplies or services) are performed. Basically, this means the following:
If you are an entrepreneur for VAT purposes and you sent invoices to your clients including VAT, it is important to take the VAT increase into account at the moment of invoicing. In addition, you must also take care that your accounting software is able to accommodate this VAT increase.