Although Belgium Government has justified their reasons for introduction of so called black box devices (fiscal data module) to prevent VAT cheaters who manipulate tax liability by adjusting or deleting their journal records, there is a resistance by business associations in Horeca sector who have triggered a request to delay security device implementation.
Goes without saying that even most developed economies are facing same tax compliance issues as developing economies. The mandatory use of certified cash register connected to black box (fiscal data module) for the restaurant and catering industry in Belgium is scheduled to commence on January 1st 2016.
Finance Minister Johan Van Overtveldt has asked on Friday the council of Ministers to postpone the enforcement of the certified cash registers in the catering industry, reported L’Echo and De Tijd.
Van Overtveldt wishes to provide some relief to businesses that have not yet been able to acquire the device. The reason is that several security device providers and cash register vendors are in fact not able to deliver on time.
In addition, the minister will propose exceptions to the obligation to use black box for some type of activity. Some 9,200 catering businesses have already installed their black box. Thousands are expected to follow by the entry into force of the regulation on 1 January.
Arguments to carryout implementation of CCRS and FDM are compelling
In October, the State Council issued a ruling on the Certified Cash Register System (CCRS) in the restaurant and catering sector (horeca). The State Council had raised objections regarding both the legal procedure that as regards the principle of equality legislation dating from the previous legislature. An agreement was reached regarding a new regulation. There is a legal base (AR No. 1 of December 29, 1992) which provides that “the operator of an establishment where meals are eaten regularly and the caterer that performs regular catering services …” must install a CCRS.For establishments that are already registered for the use of CCRS in accordance with the old rules, nothing changes regarding their obligations or the timing: as expected, they must come into line by 1 January
2016.
Establishments that fall under the scope of the new rules for the mandatory use of CCRS must register before 01/04/2016. The purchase of the CCRS is to be made for the 01/07/2016 and put in operation no later than 01/01/2017. The cash register system will be fully operational in 2017 in all catering establishments covered.
Taking in consideration that CCRS legislation was drafted in 2011, such long milestone to finally bring this group of taxpayers into compliance is quite a challenge.
2000 jobs more thanks to CCRS campaign
In addition to the protection of tax records, black box (associated with CCRS) records work hours of every employee who is working in the establishment, thus preventing illegal overtime for waiters and the hire of black labour. In that aspect, as of today, C
CRS legislation has made significant impact. Bart Tommelein, Secretary of State for the fight against social fraud:
“We have established a clear and simple limits for everyone. Popular cafes whose turnover is somewhat based on meals, often have zero or just a few employees.”
‘In the meantime, 22,000 catering establishments have already registered. 11,500 CCRS are already active and thousands of them are ready to be activated on the counters from 1 January. We will not let down the catering establishments who want to work properly. We are fully committed in favour of a catering industry who wish to be more transparent and fair competitors. The changes are already noticeable in the field: after three weeks, 720 employers have already set to work over 2,000 flexi-jobbers. 2016 will be the year of the catering industry. “
