Most clients are not exempt from VAT. Exempt clients are clients who do not have to pay VAT because of a special legal status, such as embassies. It is important not to tick the "exempt" box by mistake, as this affects your annual client listing.
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
This article covers the three most common situations where you might be unsure which option to choose.
What if my client is a private individual?
Do not tick the "exempt" box.
Simply leave the VAT number field empty: your client will automatically be treated as a private individual.
What if I ticked "exempt" to apply 0% VAT?
In most cases, one of the following options is the correct approach:
You are under the VAT exemption scheme (franchise regime)
→ VAT will automatically be set to 0%.Your client is located outside Belgium
→ A 0% VAT rate will be applied by default.You are using the reverse charge mechanism (co-contractor) in the construction sector
→ Make sure your items are marked as "services" rather than "goods", then select 0% VAT.You are simply recharging an expense to your client
→ If you are subject to VAT, you must also charge VAT to your client.
What if I want to apply 0% VAT for another reason?
Contact our support team and we will be happy to help.
Key takeaways
Only tick the "exempt" box for clients with a special legal status, such as embassies.
Private individuals should not be marked as exempt: leave the VAT number field empty instead.
If you need 0% VAT, check the franchise regime, the client's location, or the reverse charge mechanism before using the exempt option.
If you are subject to VAT and recharging an expense, you must charge VAT to your client.
Need help? Chat with us or email support@accountable.eu, we're happy to help.