Abolition of professional competence in Flanders: the consequences at a glance

In accordance with the Establishment of Businesses Act, every SME, natural person or legal entity wishing to engage in a commercial activity must prove the necessary entrepreneurial skills. For most professions, a basic knowledge of business management is sufficient but for a number of others, specific professional competence is required. This is in contradiction with European legislation that states that every European should be able to start a business on an equal basis in every Member State. A number of regulated professions are therefore being abolished.

From 1 January 2018, a number of regulated professions are to be abolished (with exception of the construction sector and the regulated activity of refrigeration fitter). The abolition only applies to Flanders.1

This applies to especially professional competence with respect to the following:

  • Butcher - wholesaler
  • Dry cleaner – painter
  • Restaurateur/caterer – banquet organizer
  • Bread and pastry cook
  • Hairdresser
  • Beauty specialist
  • Masseur
  • Chiropodist
  • Optician
  • Dental technician
  • Funeral director
  • Butcher – pork butcher
  • and the regulated activities relating to bicycles and motor vehicles 

The Establishment of Businesses Act continues to apply in the Brussels Capital Region and the Walloon Region. This therefore also applies to the regulated activities that were abolished in Flanders. In the event of a lack of consensus between the Regions as to a new criterion, the address of the registered office or the domiciled address will determine whether a company is required to demonstrate professional knowledge.

Example
A company with its registered office in the Brussels Capital Region but the address of a business unit in Flanders will still need to demonstrate professional knowledge. A company that has its registered office in Flanders but later moves to the Walloon Region will have to demonstrate professional knowledge from that moment on.

Tip
For traders and test drive plates, the combination of professional work with Nacebel codes is no longer applied. Only the Nacebel codes will apply. Every company still has to provide the basic knowledge of business management and this applies to the three regions .For Flanders, the business management will normally be abolished with effect 1 September 2019.

In the situation in which the professional competence is proven by an employee of the company, the name of the employee who also bears responsibility for the technical execution of the work is linked to the company at the Crossroads Bank for Enterprises (CBE). The name of the employee remains linked to the company after the abolition of the professional competence in the CBE and perhaps that is not what the entrepreneur wishes. A file must be submitted to the business counter to this effect.  

1. 2017-07-14 - Decree of the Flemish Government to repeal Royal Decrees concerning the professional competence of butcher-wholesaler, dry cleaner-painter, restaurateur or caterer-banquet organizer, bread and pastry cook, hairdresser, beauty specialist, masseur, chiropodist, optician, dental technician, funeral director, butcher and pork butcher and with regard to the exercise of independent activities in relation to bicycles and motor vehicles. - BOG 2017-08-09

Is there a notification requirement for your organisation?
Well begun is half done: Prepare your organisation for the go-live of the UBO register.
The register of ultimate beneficiaries (the "UBO register") will go live on 31 October 2018. In one of our previous newsletters we presented an overview of the general framework of the UBO register. The Royal Decree of 30 July 2018, published in the Belgian Official Journal of 14 September 2018, explains this register in detail. We’ve reviewed what your organisation needs to take into account.&n
One of the action points of the ATAD Directive
Impact of the implementation of the Belgian CFC legislation: the de facto tightening of transfer pricing rules?
From 1 January 2019 (fiscal year 2020), the newly introduced CFC rule will come into effect in Belgium, due to the implementation of the ATAD directive1. This new legislation must be interpreted within the broader framework of the Summer Agreement and the reforms within Belgian corporate taxation, which, like the CFC legislation, have resulted in part from the heavily discussed implementation of t
Brexit, e-commerce & VAT action plan are discussed
Pending changes in the area of international VAT
In the previous edition we discussed the expected changes in terms of VAT at a national level. In this article we will briefly consider the VAT changes that are expected internationally.                Brexit  In principle, on 30 March 2019, the ‘Brexit’ will finally be a reality. The United Kingdom will no lon
Limited number of legal entity types
Help, soon my legal entity type will no longer exist!
The WVV ("CAC") is on its way On 4 June 2018, the "draft legislation introducing the Companies and Associations Code" was filed in the Chamber, marking one of the most far-reaching corporate law reforms since the introduction of the coordinated laws on commercial companies on 30 November 1935. This extensive reform of corporate law corresponds with the introduction of the “Companies and Asso
A brief summary
What should be expected in relation to (national) VAT?
Despite the fact that many of us are still in summer (holiday) mode, this article is going to focus on the VAT changes that we could expect in the not-too-distant future. It will provide a brief summary. For a more in-depth examination, you can always contact our VAT team.  Vouchers (1 January 2019)  In June 2016, Europe set out the VAT process for vouchers (Directive (EU)2016/1065 o
The FAQ contains no fewer than thirty-one questions
FAQ published regarding the Innovation Income Deduction (IID)
On 26 July 2018, the FPS Finance used Fisconet - you can registrate for free to consult the list of FAQ - to publish the long-awaited list of Frequently Asked Questions (FAQ) regarding the Innovation Income Deduction. Since the law of 9 February 2017, introducing the Innovation Income Deduction, there now follows the first additional comments concerning the legal provisions of Art. 20
Depends on the nature and frequency of the violation
Fine levels set for non-compliance with transfer pricing documentation obligation
From tax year 2017 and, more specifically, the implementation of the mandatory transfer pricing documentation obligation, there was an immediate indication that, from a second violation of non-compliance with the transfer pricing obligations, a fine of between 1,250 EUR and 25,000 EUR (Article 445, §3 Income Tax Code 1992) could be imposed. The scales of the administrative fines and their appl
What are the consequences?
Vlabel overruled by the Council of State in the case of split acquisition and registration of bare ownership and usufruct
After years of dispute between taxpayers and the Flemish Tax Office (Vlabel), the Council of State has quashed Vlabel's position on split acquisition and split registration. Here below we explain where the problem lies and what the consequences of the decision of the Council of State are in practice. The problematic situations Two kinds of situations were targeted by the position of Vlabel. Th
Property planning finds itself in turbulent waters
Valuation of a usufruct: in complete (r)evolution?
Much has been said and written in the past few years about the valuation of a usufruct and where the fiscal shoe pinches. An overview of valuation problems, current trends and a look at future property planning is provided below. Valuation of a usufruct Valuation of a usufruct: a changing world Usufruct is one of the oldest property rights known and was already applied in Roman times. Usufr
This difference in treatment needs to be corrected
Benefit in kind on immovable property: tax authority abides by the court ruling (for now)
The Federal Public Service Finance published Circular 2018/C/57 on 15 May 2018 on the flat-rate valuation of the benefit in kind for providing an immovable property or a part of an immovable property free of charge to employees or managers. The flat-rate estimate of these benefits is laid down by the Royal Decree implementing the Income Tax Code 1992 (RD/BITC 92). The Courts of Appeal of Ghent and

Subscribe to our newsletter