VAT for Diamond Companies

Special regulations apply to the Belgian diamond industry. According to articles 40 §1 and 42 § 4 of VAT-legislation (Wetboek van de Belasting op Toegevoegde Waarde) the following transactions are exempt from VAT:

• Supply of unmounted diamonds to  Belgian registered diamond traders (including diamond manufacturers) exclusively trading in unmounted diamonds;
• Import of unmounted diamonds by Belgian registered diamond traders (including diamond manufacturers) exclusively trading in unmounted diamonds;
• Services with regard to unmounted diamonds provided to Belgian registered diamond traders (including diamond manufacturers) exclusively trading in unmounted diamonds.

The export of goods – including diamonds – by (or for the account of) the trader (in this case, the Belgian diamond trader) is always exempt from VAT  (art. 39 VAT-Legislation).

Belgian diamond traders, also acting as diamond jewelers, can not profit from the VAT exemption in articles 40§1 and 42§4.

No other import or export duties are due for Belgian diamond traders.

For more information, it is advisable to contact an accountant.