Significant increase in removals from VAT registers in December
After several months during which rather few de-registrations were observed compared to 2019, December shows a record in terms of removals from the VAT registers (+30.7% compared to December 2019). This increase in de-registrations is much more pronounced in Flanders than in Wallonia and remains very low in Brussels.
As a result, for the first time in several years, the number of VAT-registered units decreases in December compared to the previous month. Compared to December 2019, the population of VAT-registered enterprises has however increased by 4%.
Purpose and brief description
The statistics on demographic movements of VAT units produced by Statbel of the FPS Economy provides information on the number of units registered in the Crossroads Bank for Enterprises. The variations in the number of VAT units according to the various categories of demographic events like the first registrations as a VAT unit, the re-registrations as a VAT unit, immigration and emigration of VAT units as well as the cessations.
Timing of publication
Results available 60 days after the reference period
Enterprise birth (month M, year T) means first VAT registrations or re-registrations during the month M of the year T.
Enterprise death (month M, year T) means the removal from the VAT register during the month M of the year T.
Because of the strong seasonal variation in the monthly evolution of the number of VAT-registered enterprises, the birth rates (removals) are calculated compared to the month M of the year T-1. So:
The enterprise birth rate (month M, year T) is the number of enterprise births (month M, year T) divided by the number of VAT-registered enterprises (month M, year T-1). It is expressed in percentage.
The enterprise death rate (month M, year T) is the number of enterprise deaths (month M, year T) divided by the number of VAT-registered enterprises (month M, year T-1). It is expressed in percentage.
The turbulence rate is the ratio between the sum of enterprise births (month M, year T) and enterprise deaths (month M, year T), on the one hand, and the number of VAT-registered enterprises (month M, year T-1), on the other hand. It includes the number of “disruptions” (enterprise births or deaths) observed during the month M compared to the population of VAT-registered enterprises in the month M of the previous year.
It should be noted that the events included in these monthly statistics are exhaustive: if the same enterprise became VAT-registered for the first time, then was removed from the register before being re-registered once or several times, all these operations are included. This methodological observation means that there can be a slight difference between these monthly statistics and the annual statistics (where only the situation at the end of the year is included).
Number of VAT units at the beginning of the period : The number of VAT units at a given date is based on the number of units registered in the Crossroads Bank for Enterprises.
Number of first registrations as VAT unit : The number of first registrations refers to the number of VAT units which register for the first time for VAT.
Number of re-registration as VAT unit : The number of re-registrations applies to VAT units which register for VAT after having lost this status at least once.
Number of immigrations of VAT units (from other regions): Immigrations of VAT units refer to VAT units whose headquarters address has changed during the reference period. The address used is the headquarters address as registered in the Crossroads Bank for Enterprises (CBE).
Number of emigrations of VAT units (toward other regions): The emigrations of VAT units refer to VAT units whose headquarters address has changed during the reference year. The address used is the headquarters address as registered in the Crossroads Bank for Enterprises (CBE).
Number of cessations of VAT units :The number of cessations is the number of VAT units which have lost this status during the reference period.
Number of VAT units at the end of the period :The number of VAT units at a given date is based on the number of units registered in the Crossroads Bank for Enterprises.
Legal person VAT :Legal form as defined according to VAT requirements (at all points in accordance with the Nomenclature Table LU_COM. TU_COM_LGL_PSN_VAT)
Remark on joint VAT declaration - 1 April 2007 - A joint declaration of multiple parties subject to VAT belonging to a group is possible if the following three conditions are all met by the head of the group: - financial link with the other group members; - organizational link with the other group members; - economic link with the other group members. If the VAT authorities consider that these three conditions are met, the leading enterprise of the group may receive a new VAT number in order to file a joint declaration for all group members. It will then receive the legal entity of ´VAT unit´ and completes a consolidated VAT declaration for the group.
Remark on medical doctors - 1 May 2011 - Medical doctors may receive the 'subject to VAT' status as part of certain activities (participation in tests and/or research into new medicines for their patients).
Remark on bailiffs and notaries - 1 January 2012 - Bailiffs and notaries are subject to VAT. Most of them were entered into the 'subject to VAT' database in January 2012.
Remark regarding lawyers - 1 January 2014 - The lawyers are obliged to subject themselves to VAT. Most of them were imported into the database of taxpayers in January 2014.
Important remark 1: Clean-ups: - The number of closures in October 2009 was again exceptionally high. This can be explained by actions aimed at improving the content of the Crossroads Bank for Enterprises. In October, for example, 1,138 units subject to VAT were officially deleted. The units involved were legal persons. These actions also influenced the figures for September. The number of closures in September 2009 was exceptionally high. This can be explained by actions aimed at improving the content of the Crossroads Bank for Enterprises. 540 units subject to VAT were officially deleted. The enterprises involved were natural persons. This clean-up will also influence the figures for October 2009. Mainly legal persons will then be officially deleted.
Important remark 2: Geographical breakdown: - The address of the registered office/place of residence was used for the breakdown of the statistics by region. However, the economic activity does not always take place at the address of the registered office/place of residence: regional data should therefore be compared with caution. A number of apparent demographical movements may be due to corrections in addresses.
Important remark 3: Remark on the population - The statistics only refer to units subject to VAT. However, it must be stressed that some commercial enterprises are not subject to VAT. A not-for-profit organization may be subject to VAT when it provides goods or services that are included in the VAT Code. In these reports, no difference is made between commercial enterprises and not-for-profit organizations.
Important remark 4: Possible revision of results : - The results presented in these reports may still be slightly adjusted upward or downward.
Important remark 5: Limitations of administrative statistics: - This analysis is based on administrative data. A - possibly large - part of the observed movements has an administrative cause and does not necessarily reflect the economic reality. For example: the transfer of an enterprise from « natural person » to « legal person ». This can only be done by deleting the enterprise as « natural person » and re-entering it as « legal person ». When the enterprise is subject to VAT, the VAT authorities will register a deletion and a new entry. The results from this report must be interpreted cautiously. Trends that can be derived from administrative data may indeed reflect administrative changes. They do not necessarily reflect the evolution of the economic situation.