7 July 2026 • 2 minute read
Belgian VAT authorities restrict the scope of “non-transfer of own goods” regime for temporary cross-border movements
Cross-border movements of a taxable person’s own goods within the EU, including where those goods are temporarily used for the provision of services in another Member State, in principle qualify as a deemed intra-Community supply and acquisition of goods, triggering VAT registration and reporting obligations in the Member States of dispatch and arrival.
Belgian VAT law nevertheless provides for certain simplifications, including a non-transfer regime for own goods temporarily moved to another Member State for use in services performed by the taxable person, provided that certain conditions are met. Historically, the Belgian VAT authorities allowed taxable persons not established in the Member State of dispatch, but merely VAT registered there, to benefit from this simplification.
Circular 2026/C/60 now strengthens the application of this non-transfer regime in order to align it with both the wording of article 12bis, second paragraph, 5°, of the Belgian VAT Code and CJEU case-law (CHEP Equipment Pooling, C-242/19). As a result, the regime now only applies where the taxable person is established in the Member State of dispatch. A mere VAT registration is therefore no longer sufficient to rely on this regime.
This change applies to both outbound and inbound movements as from 7 May 2026. Where the conditions for the non-transfer regime are no longer met, the movement of goods will qualify as a transfer of own goods, entailing a deemed intra-Community supply in the Member State of dispatch and a deemed intra-Community acquisition in the Member State of arrival.
Key takeaway / recommendation
The stricter interpretation may significantly affect businesses temporarily moving own goods across the EU for service activities. Where only a VAT registration, without establishment, exists in the Member State of dispatch, the non-transfer of own goods regime can no longer be applied. Businesses should accordingly review their cross-border movements and ensure compliance, as misclassification may lead to additional VAT obligations in both the Member State of dispatch and arrival.
