Belgium Bookkeeping

Class 3 -- Inventories and Work in Progress

| Code | Account | Description | |---|---|---| | 30 | Matières premières | Raw materials | | 31 | Fournitures | Consumables | | 32 | En-cours de fabrication | Work in progress | | 33 | Produits finis | Finished goods | | 34 | Marchandises | Goods for resale | | 35 | Immeubles destinés à la vente | Real estate for sale | | 36 | Acomptes versés | Advance payments on inventory | | 37 | Commandes en cours | Contracts in progress |

Class 4 -- Receivables and Payables (within one year)

| Code | Account | Description | |---|---|---| | 40 | Créances commerciales | Trade receivables | | 400 | Clients | Customers | | 401 | Effets à recevoir | Bills of exchange receivable | | 44 | Dettes commerciales | Trade payables | | 440 | Fournisseurs | Suppliers | | 441 | Effets à payer | Bills of exchange payable | | 45 | Dettes fiscales, salariales, sociales | Tax and social security payables | | 450 | Dettes fiscales estimées | Estimated tax payable | | 451 | TVA à payer | VAT payable | | 452 | Impôts et taxes à payer | Taxes payable | | 453 | Précomptes retenus | Withholding taxes | | 454 | ONSS | Social security payable | | 455 | Rémunérations | Wages payable | | 46 | Acomptes reçus | Advance payments received | | 48 | Dettes diverses | Sundry payables | | 49 | Comptes de régularisation | Accruals and deferred income | | 490 | Charges à reporter | Deferred charges | | 491 | Produits acquis | Accrued income | | 492 | Charges à imputer | Accrued charges | | 493 | Produits à reporter | Deferred income |

Class 5 -- Cash and Short-Term Investments

| Code | Account | Description | |---|---|---| | 50 | Actions propres | Own shares | | 51 | Actions et parts | Shares and participations | | 52 | Titres à revenu fixe | Fixed-income securities | | 53 | Dépôts à terme | Term deposits | | 55 | Établissements de crédit | Bank accounts | | 550 | Compte courant | Current account | | 56 | Office des chèques postaux | Postal account | | 57 | Caisses | Cash in hand | | 58 | Virements internes | Internal transfers |

Class 6 -- Charges (Expenses)

| Code | Account | Description | |---|---|---| | 60 | Approvisionnements et marchandises | Purchases of goods/materials | | 600 | Achats de matières premières | Purchases of raw materials | | 604 | Achats de marchandises | Purchases of goods for resale | | 61 | Services et biens divers | Services and miscellaneous goods | | 610 | Loyers et charges locatives | Rent and related charges | | 611 | Entretien et réparations | Maintenance and repairs | | 612 | Fournitures (énergie, eau) | Utilities (energy, water) | | 613 | Fournitures de bureau | Office supplies | | 614 | Assurances | Insurance | | 615 | Transports | Transport costs | | 616 | Frais postaux et télécom | Postal and telecoms | | 617 | Honoraires | Professional fees | | 618 | Publicité | Advertising | | 619 | Rétributions de tiers | Third-party remuneration | | 62 | Rémunérations et charges sociales | Staff costs | | 620 | Rémunérations brutes | Gross wages | | 621 | Cotisations patronales ONSS | Employer social security | | 623 | Assurance groupe/pension | Group insurance/pension | | 63 | Amortissements et réductions de valeur | Depreciation and write-downs | | 630 | Dotation aux amortissements | Depreciation charge | | 634 | Réductions de valeur stocks | Write-down on inventory | | 64 | Autres charges d'exploitation | Other operating charges | | 640 | Taxes d'exploitation | Operating taxes (précompte immobilier, etc.) | | 65 | Charges financières | Financial charges | | 650 | Intérêts sur emprunts | Interest on borrowings | | 653 | Frais bancaires | Bank charges | | 66 | Charges exceptionnelles | Extraordinary charges | | 67 | Impôts sur le résultat | Income taxes | | 670 | Impôts belges sur le résultat | Belgian income tax |

Class 7 -- Produits (Income)

| Code | Account | Description | |---|---|---| | 70 | Chiffre d'affaires | Turnover | | 700 | Ventes de marchandises | Sales of goods | | 701 | Ventes de produits finis | Sales of finished products | | 706 | Prestations de services | Services rendered | | 71 | Variation des stocks/en-cours | Change in inventories/WIP | | 72 | Production immobilisée | Capitalised production | | 74 | Autres produits d'exploitation | Other operating income | | 75 | Produits financiers | Financial income | | 750 | Produits des immob. financières | Income from financial assets | | 751 | Produits des actifs circulants | Income from current assets | | 753 | Intérêts créditeurs | Interest received | | 76 | Produits exceptionnels | Extraordinary income | | 77 | Régularisation d'impôts | Tax adjustments |

Cash vs Accrual Basis

| Entity Type | Basis | Notes | |---|---|---| | All companies (SA/BV/SRL/NV) | Accrual (mandatory) | WVV/CSA requires accrual under all schemes | | Sole trader (entreprise individuelle) | Simplified if turnover < EUR 500,000 | Single-entry allowed below threshold | | Liberal professions | Accrual (double-entry) | Must keep double-entry books if company form |

Revenue recognition timing

Revenue recognised at the point of delivery for goods, at completion/over time for services

Prudence principle

Belgian GAAP follows prudence principle (voorzichtigheidsbeginsel): unrealised gains are not recognised, unrealised losses are provided for

Construction contracts method

Construction contracts: completed-contract method is the norm under Belgian GAAP (unlike IFRS)

VAT trigger (factuurstelsel)

Invoicing triggers VAT obligation regardless of payment (factuurstelsel)

Simplified single-entry bookkeeping eligibility

EUR 500,000

Full double-entry bookkeeping mandatory

Above EUR 500,000: full double-entry bookkeeping is mandatory

Deductible Expenses (Key Categories)

| Category | PCMN Code | Tax Deductibility | |---|---|---| | Office rent | 610 | 100% deductible | | Utilities (business) | 612 | 100% deductible | | Professional fees (accountant, lawyer) | 617 | 100% deductible | | Insurance (business) | 614 | 100% deductible | | Advertising | 618 | 100% deductible | | Office supplies | 613 | 100% deductible | | Postage and telecoms | 616 | 100% deductible (business portion) | | Bank charges | 653 | 100% deductible | | Software subscriptions | 613/617 | 100% deductible | | Staff costs | 62x | 100% deductible |

Partially/Non-Deductible Expenses

| Category | Limitation | |---|---| | Restaurant expenses (business) | 69% deductible | | Representation costs (gifts, receptions) | 50% deductible | | Company car costs | Limited by CO₂ formula; minimum 50% deductible (decreasing for polluting vehicles) | | Clothing (non-uniform) | 0% -- personal expense | | Fines and penalties | 0% -- never deductible | | Income tax (ISOC/VenB) | 0% -- never deductible | | Social benefit in kind (excessive) | Subject to benefit-in-kind taxation |

Company car deductibility %

Deductibility % = 120% - (0.5% × CO₂ coefficient × CO₂ emission in g/km). Minimum 50%, maximum 100%. From 2026: fully electric = 100% deductible; fossil fuel cars purchased after 01/07/2023 face decreasing deductibility.

Capitalization Rules

| Rule | Detail | |---|---| | Mandatory capitalization | All assets with useful life > 1 year must be capitalized (no de minimis threshold in law) | | Common practice threshold | Assets < EUR 1,000 often expensed directly (administrative tolerance, not law) | | Formation expenses | May be capitalized and amortized over max 5 years | | R&D costs | May be capitalized if conditions met (CNC/CBN Advice 138/1) |

Depreciation Methods and Rates

| Asset Type | Method | Common Rate | |---|---|---| | Industrial buildings | Straight-line | 5% (20 years) | | Commercial buildings | Straight-line | 3% (33 years) | | Plant and machinery | Straight-line | 20% (5 years) | | IT equipment (computers) | Straight-line | 33% (3 years) | | Office furniture | Straight-line | 10-20% (5-10 years) | | Vehicles | Straight-line | 20% (5 years) | | Software | Straight-line | 33% (3 years) | | Goodwill | Straight-line | Min. 5 years (max 20% p.a.) | | Intangible assets (general) | Straight-line | Minimum 5 years (20% max) | | Formation expenses | Straight-line | Maximum 5 years (20%) |

Pro rata temporis depreciation

Proportional (pro rata temporis) depreciation in year of acquisition -- calculated on daily basis

Declining balance restriction

Double declining balance method was formerly allowed; now only straight-line is accepted for tax (since 2020 reform for large companies; SMEs retained declining-balance option)

SME declining-balance option

SMEs may opt for declining-balance (max 2× straight-line rate, capped at 40% of acquisition cost)

Residual value convention

Residual value is typically EUR 0 (Belgian practice)

P&L Full/Abbreviated Scheme (by Nature)

``` I. Chiffre d'affaires (Turnover) xxx II. Variation des stocks / en-cours xxx III. Production immobilisée xxx IV. Autres produits d'exploitation xxx ------- Total produits d'exploitation xxx V. Approvisionnements et marchandises (xxx) VI. Services et biens divers (xxx) VII. Rémunérations et charges sociales (xxx) VIII. Amortissements et réductions de valeur (xxx) IX. Provisions pour risques et charges (xxx) X. Autres charges d'exploitation (xxx) ------- Bénéfice/Perte d'exploitation xxx XI. Produits financiers xxx XII. Charges financières (xxx) ------- Bénéfice/Perte courant(e) xxx XIII. Produits exceptionnels xxx XIV. Charges exceptionnelles (xxx) ------- Bénéfice/Perte de l'exercice avant impôts xxx XV. Impôts sur le résultat (xxx) ------- XVI. Bénéfice/Perte de l'exercice xxx ```

Balance Sheet Full/Abbreviated Scheme

``` ACTIF (Assets) ACTIFS IMMOBILISÉS (Fixed assets) I. Frais d'établissement xxx II. Immobilisations incorporelles xxx III. Immobilisations corporelles xxx IV. Immobilisations financières xxx ACTIFS CIRCULANTS (Current assets) V. Créances à plus d'un an xxx VI. Stocks et commandes en cours xxx VII. Créances à un an au plus xxx VIII. Placements de trésorerie xxx IX. Valeurs disponibles xxx X. Comptes de régularisation xxx ------- TOTAL DE L'ACTIF xxx ======= PASSIF (Equity & Liabilities) CAPITAUX PROPRES (Equity) I. Capital/Apport xxx II. Primes d'émission xxx III. Plus-values de réévaluation xxx IV. Réserves xxx V. Bénéfice/Perte reporté(e) xxx VI. Subsides en capital xxx PROVISIONS ET IMPÔTS DIFFÉRÉS xxx VII. Provisions pour risques et charges xxx VIII. Impôts différés xxx DETTES (Liabilities) IX. Dettes à plus d'un an xxx X. Dettes à un an au plus xxx XI. Comptes de régularisation xxx ------- TOTAL DU PASSIF xxx ======= ```

Belgian Bank Statement Formats

| Bank | Format | Key Fields | |---|---|---| | KBC | CSV, CODA, MT940 | Date, Amount, Counterparty, Communication (structured/free) | | BNP Paribas Fortis | CSV, CODA | Date, Amount, Details, Counterparty name, Communication | | Belfius | CSV, CODA | Date, Amount, Counterparty, Reference, Communication | | ING Belgium | CSV, CODA | Date, Amount, Description, Counterparty IBAN | | Argenta | CSV | Date, Amount, Description, Counterparty | | Crelan | CSV, CODA | Date, Amount, Reference, Communication |

CODA

CODA (COdified DAily statement) is the Belgian standard bank statement format. All Belgian banks provide CODA files, which can be imported directly by accounting software (Exact, Yuki, Octopus, etc.).

Structured communication usage

Belgian transfers often use structured communication (gestructureerde mededeling / communication structurée) -- a 12-digit number formatted as +++xxx/xxxx/xxxxx+++. This is used for: Tax payments to FOD/SPF; Social security (ONSS/RSZ) payments; Invoice references (OGM/VCS)

Common Transaction Descriptions

| Pattern | Classification | |---|---| | DOMICILIERING, DOMICILIATION | Direct debit (recurring expense) | | OVERSCHRIJVING, VIREMENT | Bank transfer | | BANCONTACT, MISTER CASH | Card payment | | FOD FINANCIEN, SPF FINANCES | Tax payment | | RSZ, ONSS | Social security payment | | SOCIAAL SECRETARIAAT | Payroll bureau fee | | PROVISIE, BANKKOSTEN | Bank charges | | INTRESTEN, INTÉRÊTS | Interest (check direction) |

Size Categories (from financial years starting after 31 December 2023)

| Category | Balance Sheet Total | Turnover (excl. VAT) | Employees | |---|---|---|---| | Micro | ≤ EUR 450,000 | ≤ EUR 900,000 | ≤ 10 | | Small (Petit/Klein) | ≤ EUR 6,000,000 | ≤ EUR 11,250,000 | ≤ 50 | | Large | Exceeds 2+ small criteria | | |

One-criterion tolerance

Must not exceed more than one criterion on the balance sheet date of the last completed financial year.

Simplifications

| Feature | Micro | Small | Large | |---|---|---|---| | Annual accounts scheme | Micro-scheme | Abbreviated scheme | Full scheme | | Filing with NBB | Required (micro model) | Required (abbreviated) | Required (full) | | Statutory audit | Not required | Not required | Required | | Management report | Not required | Not required | Required | | Notes detail | Very limited (8 items) | Limited | Full | | Filing fee (2025) | EUR 72.10 (online) | EUR 72.10 (online) | EUR 405.10 (online) | | Social balance sheet | Not required | Required if employees | Required |

Simplified single-entry bookkeeping eligibility

EUR 500,000

Above threshold rule

Above EUR 500,000: full double-entry bookkeeping mandatory

Annual income tax filing

All self-employed must file annual income tax (personenbelasting/IPP) with annexe for professional income

Social contributions payment

Social contributions paid to social insurance fund (sociaal verzekeringsfonds)

Starting point for tax computation

Annual accounts are the starting point for the tax computation

Fiscal result formula

Fiscal result = accounting profit + disallowed expenses (DNA) - tax-exempt income

Key add-backs

Key add-backs: restaurant costs (31%), representation (50%), car excess, fines

VAT accounts

VAT is recorded in accounts 411 (input VAT recoverable) and 451 (output VAT payable)

VAT return frequency threshold

EUR 2,500,000

Annual client listing deadline

Annual client listing (listing annuelle) due by 31 March

Intra-community listings frequency

Intra-community listings due monthly

Self-employed quarterly contributions

Self-employed: quarterly social contributions to sociaal verzekeringsfonds (accounts 62x for companies, deducted personally for sole traders)

Company employer contributions

approximately 25-30% of gross salary (ONSS/RSZ)