If you are considering a Belgium warehouse rental, you might be wondering if you are eligible to claim VAT. There are many advantages to this type of rental. In this article, we’ll look at the expenses you’ll incur, the availability of warehouses in Belgium, and the VAT implications of the transaction. After reading through this guide, you’ll have a clearer picture of whether Belgium warehouse rental is right for your company. The following are some tips to help you make the right decision.
Expenses associated with warehouse rental in Belgium
Belgian warehouse space is in great demand – 600,000 square meters of new space are scheduled to be constructed this year alone. The trend shows no sign of slowing – warehouse rents are on the rise in Belgium. With a COVID-19 pandemic raging, and e-commerce growing by leaps and bounds, businesses in the country are now required to build strategic stocks of goods.
For businesses, rents are often lower than market rents in neighboring countries. In Belgium, however, landlords are taxed on their cadastral income and not on the actual rent. In many cases, landlords include clauses that restrict tenants from using their property professionally. If this clause is violated, rent cannot be deducted as a business expense. Therefore, it’s vital to ensure the lease agreement allows tenants to use the property only for business purposes.
The logistics sector is driven by a number of global drivers with varying impacts on local markets. One such driver is demographics. Europe is experiencing an ageing population, which threatens to exacerbate the already complex labour situation in the sector. The Netherlands, which is well known for its logistics hubs, has been a hot target for major companies. Belgium, meanwhile, is a great place to locate a large logistics centre.
Legal possibilities to make the rental of a warehouse subject to VAT
If you’re looking for an empty Belgian warehouse, there are a few things you should know. While the rental of warehouses is currently tax-free, you can make it subject to VAT under certain conditions. The first step is to check if your lease can be subject to VAT. If it does, you can sign the appropriate documentation. After that, it’s up to you to find a logistics partner who is VAT-compliant.
There are two types of warehouses that are subject to VAT. First, there are warehouses that are within harbour areas. If you lease a warehouse in a harbour area, you’re going to be charged VAT on the rental of that space, regardless of what activity you perform in it. Second, if the warehouse contains offices, sanitary facilities, or other supporting spaces, those areas are exempt from VAT.
In Belgium, renting a warehouse is VAT-exempt when the lessor pays no VAT. However, you can make a case for making the rental of a Belgian warehouse subject to VAT by setting up a colocation service or consignment sale agreement. You can also ship equipment to a Belgium warehouse for leasing, warranty maintenance, or other reasons. You may even opt for leasing or renting a warehouse space if you already have one in the EU.
Availability of warehouses in Belgium
Availability of warehouses in Belgium is improving. The market has grown to more than two million square meters in 2018, eight percent higher than the year before. The logistics sector in Belgium is also experiencing a boom, with only one percent of warehouses left empty. Despite the rapid growth in the sector, Belgium has one of the lowest vacancies rates in Europe, and the space available for lease is rented out in record time. Although Belgium has suffered from the COVID-19 pandemic, there are still many opportunities for business owners to build strategic stocks in the country.
One of the most attractive features of Belgium is its excellent location in the heart of Europe. This location offers an excellent pool of skilled workers, and Belgium boasts highly developed infrastructure. An example of an industrial company that has recently opened in the country is Unilin, a member of the Mohawk Group. Unilin operates nine production sites in Belgium and has invested heavily in automated pallet change and automation. In addition, the country offers great access to the EU single market.
According to JLL, the industrial and logistics market leader in the world, Belgium offers a number of advantages for logistics tenants. With almost 22 million square meters of existing logistics space, Belgium is at the heart of the logistics ‘blue banana’. Furthermore, major companies like McDonald’s and Havi Logistics have partnered for 20 years. Their successful relationship has led to a number of innovations in supply chains. And with Belgium’s low cost, there are countless opportunities for expansion.