Belgian DAC6/MDR Submission Process

On 23 November 2020, the Belgian Tax Authorities published guidance on the technological requirements of the DAC6/MDR reporting. The published documents include the MDR-DAC6 BE Scheme User Guide and the Validation Rules. The User Guide describes the electronic form “MDR-DAC6 BE Scheme” which must be used by the intermediary or the relevant taxpayer for reporting and explains which information must be included in the form. In order to file a valid reporting, the reporting person must comply with the principles described in the guide and also take into account the Validation Rules to guarantee the quality of the filed information.

The MDR-DAC6 BE Scheme User Guide and the Validation Rules are published in English and are available on the website of the Belgian Tax Authorities via this link.

What is the DAC6-submission process?

The DAC6-reporting in Belgium is based on the submission of an XML-file. The Belgian XML-scheme is designed by the Belgian Tax Authorities based on internationally agreed specifications whereby a number of national validation rules apply for the generation of the XML-file. As soon as an XML-file is generated, it can be submitted via the webportal “MyMinfin “. This submission process requires a permission right (“Role”) setup. After submission, the Tax Authorities will verify if the XML-file satisfies the requirements, with the help of the validation rules. When the XML-file is validated, the Tax Authorities will send a delivery receipt, including the identification references attributed to the new arrangement and/or new reporting. In case the XML-file is not valid, a failure report will be sent to the submitter.

What are the first submission deadlines?

The DAC6 legislation provides for the mandatory reporting of reportable cross-border arrangements by intermediaries and relevant taxpayers to the tax authorities within 30 days. The legislation is effective as from 1 July 2020, but due to the 6-months deferral of the reporting obligations, the following deadlines apply for the submission of the first reports:

• reportable cross-border arrangements of the transitional period (i.e. where the first step in the implementation is made between 25 June 2018 and 30 June 2020) must be reported by the latest by 28 February 2021;
• reportable cross-border arrangements that have been made available for implementation, or are ready for implementation, or where the first step in the implementation has been made in the period between 1 July 2020 and 31 December 2020, must be reported by 30 January 2021 (i.e. within 30 days staring on 1 January 2021);
• the first periodic report for marketable arrangements must be submitted by 30 April 2021.

For more information on the Belgian DAC6/MDR legislation, please visit our website via this link.

What are the implications for you?

It is now possible to start setting up the relevant technological infrastructure in order to be able to submit DAC6-reports to the Tax Authorities within the reporting deadlines. To comply with the reporting requirements, we advise you to:

• map the type of transactions in your organization that may typically trigger reporting under DAC6, in order to adequately manage your compliance risks;
• set up your internal processes in order to be able to identify potentially reportable cross-border arrangements in time;
• make in-house arrangements for setting up the required technology or outsource your compliance to specialized managed service providers, in order to ensure that you can effectively comply with your DAC6 reporting obligations within 30 days, including the submission of the XML-file to the Tax Authorities.

How can we assist you?

We offer different service levels to help you complying with the DAC6 reporting obligations and can tailor these services to your organizational and business needs. Our service levels include:

• DAC6 impact assessment: We can help you to assess the compliance risk areas of DAC6 within your organization.
• DAC6 internal processes: We can help you to set up procedures to detect and identify reportable cross-border arrangements in your organization and define a governance framework. We also assist you with implementing these procedures and training your staff.
• DAC6 reporting: We can analyze, review and submit your reportable cross-border arrangements on your behalf to the relevant tax authorities.

DAC6 Processor: We can provide you with a web-based technology solution, the “DAC6 Processor”. This solution offers you an exclusive and personalized environment where you can independently manage your entire DAC6 reporting process.

If you have any questions on the DAC6-reporting requirements and related technological solutions, we are glad to assist you and feel free to contact our advisors.