Collaborative economy: the new tax regime
August 2021 – After the Constitutional Court annulled the regime of "complementary tax-exempt activities" at the end of 2020, a new specific tax regime has been introduced for services (and thus not for the sale of goods) that a private individual provides to another private individual through an approved electronic platform. In the course of May, the administration explained this new regime in its circular 2021/C/44.
What's new
The collaborative economy model is based on the exchange and sharing of services, spaces, goods, etc. The Internet has facilitated these exchanges. It can be rental, lending and exchange of goods (real estate and movable property), provision of meals, services...
In this respect, a first important remark should be made: the new special tax regime for collaborative economies applies only to services, and therefore not to the sale of goods. The outright rental of goods is also excluded from the scheme, because it is not a service.
The special tax regime also applies only to transactions between private individuals. The participants cannot therefore act in the context of their professional activity.
The third change compared to the old law on complementary activities is that the old law provided for an exemption from personal income tax. The new law, on the other hand, provides for separate taxation of miscellaneous income, at least if all the legal conditions are met.
Exclusively through a platform
The services must be offered and paid for via a licensed platform. The administration warns that services provided via an unauthorised electronic platform do not qualify for the collaborative economy tax regime. This is of course correct, but it does not mean that the services become taxable by definition. It all depends on the frequency of the transactions, the investments and the profits made.
Furthermore, the service provider can only provide his services within the framework of agreements that have been concluded via an approved electronic platform. For example, a babysitter who first has three months of babysitting income and then offers services via an approved platform can no longer benefit from the special tax regime in that year.
Taxable as miscellaneous income
The platform takes care of the payment of the "allowances". The gross taxable amount is equal to the amount paid by the platform or its intermediary, plus any amounts withheld by the platform or its intermediary, such as withholding tax.
The net taxable amount is equal to the gross amount minus a 50% flat-rate fee. It is not possible to deduct actual expenses.
The tax rate is 20% (unless the taxpayer paid less tax by applying the standard rate).
Like wages, these allowances are subject to withholding tax. This amounts to 10,70% of the gross amount of the income, i.e. the amount actually paid or allocated by the platform or its intermediary, plus any sums withheld by the platform or its intermediary.
Taxable as professional income
If the income in question paid or allocated under the conditions described exceeds a certain limit, it becomes professional income. This limit is not very high.
As soon as the gross income of the current or previous year exceeds 3 830 euros, the income from the collaborative economy constitutes professional income, unless proven otherwise. This amount of 3 830 euros must be indexed:
for the income year 2020 (tax year 2021): 6 340 euros ;
for the income year 2021 (tax year 2022): 6 390 euros.
It is irrelevant in this respect whether the taxpayer acquires this income via a single platform or via several platforms: the limit applies only once for all income accumulated.
To complicate matters: if, in addition to the income from the collaborative economy, the taxpayer also acquires allowances in the context of associative work, the limit applies for both types of income combined.
However, the taxpayer has the possibility to prove that the activity is not a genuine professional activity. For example, because the activity is carried out only occasionally.
An employee who, in the context of the collaborative economy, offers a service that is very similar to his or her salaried activity can also benefit from the special tax regime. This is not the case for the self-employed entrepreneur who offers services via the platform that he also offers as a self-employed entrepreneur: in this case, the income is still taxable as professional income.
Since 1 January 2021...
The new regime is applicable to income paid or allocated since 1 January 2021, even if the services were provided before that date. The withholding tax only applies from 1 February 2021.
