Non-Profit Checklist

1. Wealth Tax
Starting from the 2024 tax year, non-profits and foundations will be subject to a progressive wealth tax:

• Assets <€50,000: exempt
• €50,000 – €250,000: 0.15%
• €250,000 – €500,000: 0.30%
• €500,000: 0.45%

This applies to both domestic and foreign assets, such as real estate, financial investments, etc.

Certain non-profits (in education, healthcare, culture, sports, etc.) may qualify for exemptions or reductions. Every non-profit must file an annual tax return within the first three months of the tax year.

2. E-invoicing
From January 1, 2026, almost all Belgian VAT-liable businesses must use structured e-invoicing (XML format via Peppol) for B2B transactions.

VAT-exempt non-profits, operating solely under Article 44 of the VAT Code, are not required to issue or receive e-invoices. Mixed VAT-liable non-profits must use e-invoices only for taxable transactions. Ensure your organization identifies its obligations and sets up procedures to handle e-invoicing correctly.

3. VAT Status
Non-profits are usually VAT-exempt for core activities but may be subject to VAT for fundraising, sales, or real estate rentals. Assessing each activity correctly helps minimize tax risks and optimize VAT deductions.

4. Quasi-immunity for Executing Agents
From January 1, 2025, directors, employees, and independent contractors may be held personally liable by third parties. To mitigate this, liability exclusions should be explicitly included in contracts.

5. Data Protection (GDPR)
Many non-profits are not fully GDPR-compliant. Increasing complaints, especially from former employees, pose legal risks. Regular updates to GDPR documentation and processes are essential.

6. Volunteers & Non-Profit Workers
Volunteers are unpaid, while non-profit workers receive tax-favorable allowances. Compliance with legal limitations on working hours and responsibilities is crucial to avoid conflicts and liabilities.

7. International Purchases
Non-profits must often pay Belgian VAT on foreign purchases, especially for intra-EU acquisitions above €11,200 per year, requiring special VAT declarations.

8. Subsidies
Subsidies ensure financial stability and growth. Actively seeking funding opportunities enhances the organization’s impact.

9. Cash Flow Management & Reporting
Integrating financial data across ERP, CRM, and other systems enhances decision-making and cost efficiency. Digitalization can improve financial sustainability.

Conclusion

Regulatory changes in 2025 will impact non-profits significantly. Timely implementation and financial optimization are crucial to avoiding legal and financial risks.

Questions? Contact us.