Call to NATO contractors abroad Belguim

[BlackCountryContractor]

Quick question

if one went as a FTCer would they be covered under this agreement?

[JohnM]

I have contracted in brussels, although not for Nato - avoid is my advice

Its an awful place, I have worked all over the world and the UK and Brussels was the worst place I have worked.

[David71]

Same boat....

I'm 4 weeks into a 6 month contract in Brussels...end client is NATO but my client is a defence company....
Few people, UK, other EU and US citizens in the office have gone through the following process and are 100% adament that it results in you just using your UK Ltd company as normal, paying UK (or where-ever) corporation tax etc (remember that VAT is 0% rated on your invoice though...)

1. Go to SHAPE in Mons and ask for a AMIS pass - if you are direct to NATO this is straight forward, if you are a sub-contractor then your client needs to request an 'invite' from Mons
2. Register at the Mons commune - REGARDLESS OF WHERE YOU LIVE (it appears this is an accepted 'dodge' with most people putting the SHAPE office down as their 'address'
3. When registering at the Mons commune, make sure you are recorded as a CROSS BORDER WORKER
4. Return to SHAPE and wait for your pass

I've been told to allow three days for the process - sitting in offices and travelling betweeen SHAPE and the Mons commune.

It then appears, that as a 'NATO' worker, and clssified as a 'Cross border worker' the Belgian tax authorities wipe their hands of you and allow you to just invoice via the UK.

While I haven't gone through this myself around 6 or 7 other contractors working for my client swear they've worked like this (up to several years) without any problems.

FYI: I'm waiting for my 'invite' to apply for an AMIS (NATO) pass and am hoping to go through the process in the next week or two - Ill update with what happens! If it doesn't work, then I'll not be stsaying longer than 6 months.....

[Catean]

Hi, David, have you managed to get your AMIS pass and confirm that with the crossborder status you are considered a non-resident and the belgian tax man will not follow you?

[ggan10]

I'm 4 weeks into a 6 month contract in Brussels...end client is NATO but my client is a defence company....
Few people, UK, other EU and US citizens in the office have gone through the following process and are 100% adament that it results in you just using your UK Ltd company as normal, paying UK (or where-ever) corporation tax etc (remember that VAT is 0% rated on your invoice though...)

1. Go to SHAPE in Mons and ask for a AMIS pass - if you are direct to NATO this is straight forward, if you are a sub-contractor then your client needs to request an 'invite' from Mons
2. Register at the Mons commune - REGARDLESS OF WHERE YOU LIVE (it appears this is an accepted 'dodge' with most people putting the SHAPE office down as their 'address'
3. When registering at the Mons commune, make sure you are recorded as a CROSS BORDER WORKER
4. Return to SHAPE and wait for your pass

I've been told to allow three days for the process - sitting in offices and travelling betweeen SHAPE and the Mons commune.

It then appears, that as a 'NATO' worker, and clssified as a 'Cross border worker' the Belgian tax authorities wipe their hands of you and allow you to just invoice via the UK.

While I haven't gone through this myself around 6 or 7 other contractors working for my client swear they've worked like this (up to several years) without any problems.

FYI: I'm waiting for my 'invite' to apply for an AMIS (NATO) pass and am hoping to go through the process in the next week or two - Ill update with what happens! If it doesn't work, then I'll not be stsaying longer than 6 months.....

Hi David,

can you share your experience in SHAPE please? Did you manage to pay uk tax only and if there any extra tax you need to pay?and what about expense claim such as accommodation etc?

Would be great to hear from you as lots of people said avoid Belgium, however NATO might be different.

Thanks

[Tatler]

You register with the commune as a cross border worker, put down the SHAPE inn as your residence, no-one will check. Once you have the letter from commune, and security have the RFV (request for visit, with security clearance on) from the contracting agency, you will get an AMIS, via a few stamps from HR/security, it can easily be all done in one day, if you turn up at the commune early.
Regarding the tax, you are an employee sent on an assignment, first 2 years is same as anywhere else, you will only pay corporation tax, if you have a half decent accountant. After 2 years is a different matter, but there are a lot of people here flying under the radar.

[Alex87]

You register with the commune as a cross border worker, put down the SHAPE inn as your residence, no-one will check. Once you have the letter from commune, and security have the RFV (request for visit, with security clearance on) from the contracting agency, you will get an AMIS, via a few stamps from HR/security, it can easily be all done in one day, if you turn up at the commune early.
Regarding the tax, you are an employee sent on an assignment, first 2 years is same as anywhere else, you will only pay corporation tax, if you have a half decent accountant. After 2 years is a different matter, but there are a lot of people here flying under the radar.

So what's the sequence? Are you saying:

1) Register for LIMOSA (Shape inn details)pre-departure
2) Register at Commune with Shape Inn

Regarding the taxation - is this done as a UK LTD Company where you're expensing accomodation/travel/sustinance and paying a small salary which is taxed via Belgium or is it all done through the UK with nothing declared in Belgium?

If you're intending to do a simple 6 month contract with SHAPE - what would the correct/most effective procedure be (with the information suggested in contracting in Belgium) vs what you could potentially get away with (at risk)?


Alex

[BlasterBates]

If you are working through a UK defence contractor, then it is possible you are not subject to Belgian tax provided you are commuting and don't qualify as permanently resident.

[CoolCat]

I have read a number of posts about contracting abroad and especially Belguim. I realise this question has been answered numerous times but I just wanted to know if their are any different rules when contracting for NATO?

I'm pretty sure I know the answer but I am being told different from a very well known UK agency that supplies NATO and other Gov agencies.

They are telling me they have 100's of contractors that work for NATO that are all running through their UK Ltd Company without any issues. I can only assume this is because they are either under the radar or have not been caught up with yet?

I would be interested to hear from anyone who has contracted for NATO.

I also have heard through a friend that they know of two contractors that had to register their company (non UK but still within EU?) with the local commune so they can contract for 6mnths but pay tax back home. They were told to do this by NATO before they receive ID badges. I do wonder if that is not totally correct and it was in fact they had to register themselves not their company.

Any thoughts on this would greatly appreciated.

Many Thanks

checkerman

If you are contracting direct to NATO then be aware that by international conventions that NATO is exempt from paying VAT. They just dont pay it. So your invoices need to be free of any VAT. But you will still need to reclaim VAT for anything you spend, so you will become a big VAT reclaimer, which will probably attract the tax man to come and do a check. Make sure you accountant is aware this complication will crop up.

[Tatler]

So what's the sequence? Are you saying:

1) Register for LIMOSA (Shape inn details)pre-departure
2) Register at Commune with Shape Inn

Regarding the taxation - is this done as a UK LTD Company where you're expensing accomodation/travel/sustinance and paying a small salary which is taxed via Belgium or is it all done through the UK with nothing declared in Belgium?

If you're intending to do a simple 6 month contract with SHAPE - what would the correct/most effective procedure be (with the information suggested in contracting in Belgium) vs what you could potentially get away with (at risk)?


Alex

Go to commune with contract, and get LIMOSA/ANNEX 15 letter, costs nothing, this allows you to work in BE as a frontier worker, takes 20 mins, you need a passport photo. Yes say SHAPE INN as address, no one will check, even if you are renting a private property.
Yes the taxation is done in UK, via LTD company, claiming expenses (first 2 years), so £715 salary, rest is expenses. You will not pay any BE tax, no contractors do, and the Mons commune is fully used to SHAPE contractors.

Has it changed after Brexit? Not sure, it's very confusing. I think those of us who were here last year, are ok, we got annex15 letters at end of 2019 that ended 31/12/2020, but were issued unlimited ones again last year, with no end date, it may be different for new UK contractors coming here.