Will you change your supply chain to benefit from a VAT and duty free importation into Belgium?

As an effort to limit the impact of COVID-19, the Belgian government has introduced a temporary relief measure whereby certain goods imported into Belgium can benefit from a VAT and duty exemption. 

A key condition to benefit from said exemption entails the importation by a so-called recognized healthcare institution (almost all Belgian hospitals qualify as such an institution). 

Taking into account that (i) a Belgian hospital in general has only a limited right of VAT deduction and (ii) the exemption requires an actual importation, i.e. local Belgian sales nor intra-Community acquisitions can benefit from said exemption you may:

– be contacted by Belgian hospitals to change your supply chain in such way that they could benefit from the exemption

– consider changing your supply chain to offer the benefit from the exemption to the Belgian hospitals 

We will be pleased to further discuss the direct and indirect tax consequences of such a potential change with you. 

Dr. Sandra Ragaz, Partner
Leader Pharma & Life Science VAT
PwC Switzerland
Tel.  +41 58 792 44 69
Mobile: +41 79 792 72 98
Email: sandra.ragaz@ch.pwc.com

Claire De Lepeleire, Director
PwC Belgium
Tel: +32 2 7107417
Mobile: +32 475 910868
Email: claire.de.lepeleire@pwc.com

Christine Frankenberger, Manager
PwC Switzerland
Tel.  +41 58 792 46 90
Mobile: +41 79 359 06 38
Email: christine.frankenberger@ch.pwc.com