Directors jointly liable for repeated default of VAT due
The new program bill, approved by the Belgian parliament, introduced a new article 93 undecies C into the Belgian VAT Code.
In the future repeated non- payment of VAT due by a company or a large non- profit organization will be supposed to be an error of the director. This assumption is subject to counter arguments however the directors of the concerned company may risk to become jointly liable for unpaid VAT.
The assumption is not valid in case the non-payment is the consequence of financial difficulties which have lead to the opening of a procedure for judicial agreement, for a failure of company or for a judicial dissolution.
Before a judicial claim can be imposed, the receiver of the administration is obliged to send a registered letter. After receipt of this registered notice the debtor of the VAT has one month to arrange the situation or to disprove the assumption of being guilty. In the meantime, the receiver of the administration has the possibility to request preservative measures.
