Transitional arrangements increase VAT rate
There will be a transitional measure for the increase in the VAT rate from 19 to 21 per cent on 1 October 2012. This comes from the legislative proposal for the development of tax incentives from the 2013 budget agreement.
Moment of execution
The moment of execution is almost always decisive for the question of whether a supplier should charge 19 or 21 per cent, according to the bill proposal. The moment the invoice is issued is not of importance:
“The sales tax which is payable after 30 September 2012 with respect to the supply of goods and services pursuant to Article VIII, sections A and B, will be raised with effect from 1 October 2012 and those goods and services which are supplied before or on 30 September 2012 are to be calculated with the rate that is applicable at the time of supply of the goods or service.
If sales tax is payable before 1 October 2012 with respect to the supply of goods and services pursuant to Article VIII, sections A and B, and the goods or service are supplied after this date, due to the fact the rate will be raised with effect from 1 October 2012, more sales tax would be payable if the tax would be calculated at the rate that is applicable at the time when the delivery of goods or services takes place. This amount is still due after 1 October 2012."
Payment in instalments
If according to an agreement entered into before 1 October 2012 a business supplies real estate or does construction work after 30 September 2012 for a fee paid in instalments, the increase of the sales tax from 19 per cent to 21 per cent is not applicable for the amount of the fee which is equal to the sum of the instalments which expire before 1 October 2012.
Source: Fiscaal totaal