VAT grouping in Belgium, VAT and bodies governed by public law

This article discusses two important changes made to the Belgian VAT legislation in 2007. First, Royal Decree No. 55 enables companies closely bound together financially, organizationally and economically to set up a VAT group. Second, the Belgian VAT legislation concerning the VAT obligations of public authorities was brought into line with the EC VAT Directive. This article focuses on the impact of these changes on the adjustment of the VAT levied on fixed assets.