Coronavirus: Flemish Protection Mechanism July-September

Author: Jonas Verplanken (Legal Expert)
Date:

The relaxation of the Summer Plan has allowed many sectors to resume their activities. However, a number of sectors remain closed or under significant operating restrictions due to the corona measures. For these sectors, the Flemish Protection Mechanism is reinstated for the period from 1 July up to and including 30 September 2021.

For whom?

Only companies operating in one of the following sectors can apply:

  • discotheques and dance halls (NACE 56302): venues consisting of one or more rooms where the main activity is dancing to music and which were compulsorily closed during the subsidy period as a result of the corona measures
  • party venues (NACE 56210, 56290): premises within a building or its periphery which are made available to customers on payment of a fee for the organisation of functions where mainly food and drink are provided either in-house or by an external caterer
  • hotels (NACE 55100): operation of tourist accommodation which meets the conditions for recognition as a hotel by Toerisme Vlaanderen (the operation meets the additional opening and operating requirements referred to in article 7 of the Decree of the Flemish Government of 17 March 2017 implementing the Decree of 5 February 2016 on tourist accommodation and has obtained recognition for the name referred to in the aforementioned article 7, in accordance with article 6 of the Decree of 5 February 2016 on tourist accommodation and article 18 of the aforementioned Decree of the Flemish Government)
  • event companies (NACE 56210, 77293, 77294, 77296, 77392, 90022, 90023, 90041): companies whose main activity in the reference period is to organise events, parties and shows or to provide on a contractual basis goods or services to such organisers, whether or not for hire. The main activity is listed as an activity in the Crossroads Bank for Enterprises under the NACE or VAT code and represents more than 50% of the turnover during the period from 1 July up to and including 30 September 2019.
  • travel agencies (NACE 79110, 79120): travel agencies and tour operators offering and organising trips, providing accommodation and transport for travellers and tourists, and organising and arranging ‘tailor-made’ trips
  • transport of passengers by coach (NACE 49390): companies operating coaches and buses providing passenger transport services for excursions and trips.

How much?

The premium amounts to 10% of the turnover excluding VAT for the period from 1 July 2019 up to and including 30 September 2019.

The maximum aid amount for the period from 1 July 2021 up to and including 30 September 2021 is:

  • € 22,500 for companies employing up to and including 9 employees
  • € 45,000 for companies employing10 to 49 employees
  • € 120,000 for companies employing 50 employees or more.

There is no minimum amount for this period.

Conditions

The main principles of the Flemish Protection Mechanism are maintained:

  • the drop in turnover must have been suffered in the period from 1 July 2021 up to and including 30 September 2021;
  • the company must demonstrate a drop in turnover, excluding VAT, of at least 60% compared to the turnover of the same period in 2019;
  • the aid is calculated on the turnover excluding VAT for the period from 1 July up to and including 30 September 2021. The aid is granted at company level.
  • the aid rate for the subsidy period is 10% for companies, associations and self-employed persons as a main activity or who are treated as a self-employed person in a secondary occupation; for the self-employed in a secondary occupation, the aid rate is halved.
  • the company must have started up and have an active place of business in Flanders on 1 July 2021.

Some changes are introduced compared to the previous Protection Mechanisms:

  • companies which are obliged to use a ‘white’ cash register will not receive any aid if they do not have a registered cash register.
  • there is no minimum amount anymore. Aid is granted only on the basis of the turnover actually achieved in the reference period.
  • companies will have to demonstrate the drop in turnover before the aid is granted. They will have to substantiate the completed turnover amounts by means of the VAT quarterly or monthly declarations for the period from 1 July 2021 up to and including 30 September 2021 on the one hand and for the reference period from 1 July 2019 up to and including 30 September 2019 on the other hand. If these quarterly declarations do not include all time worked within respectively the subsidy and reference period, the time worked during the subsidy and reference period will have to be provided for and confirmed by a declaration of a certified external bookkeeper, accountant or company auditor.

For the other conditions, please refer to the Vlaio website on this subject.

How to apply?

The application can be made via the agency ‘Innoveren en Ondernemen’ (Vlaio).

The application must be submitted online. You can apply from 15 October 2021 up to and including 16 November 2021.

Important note!

The measures as described in this Infoflash have not yet been published in the Belgian Official Gazette.

Overview

 

FPM May 2021

FPM June 2021

Targeted protection mechanism

July-September 2021

Scope of application

All companies*

All companies*

Certain sectors*

Submit application until

5/7/21

6/8/21

16/9/2021

Reference period for drop in turnover

May 2019

June 2019

July-September 2019

Drop in turnover

60%

60%

60%

Premium

10% of turnover

10% of turnover

10% of turnover

Minimum amount of premium

€ 600/month

€ 600/month

No minimum

Maximum amount of premium

€ 7,500

€ 15,000

€ 40,000

€ 7,500

€ 15,000

€ 40,000

€ 22,500

€ 45,000

€ 120,000

Legal source

DFG 21/05/21

DFG 21/05/21

DFG 10/09/21

Source:

  • Decree of the Flemish Government of 10 September 2021 concerning the Flemish Protection Mechanism for companies that have suffered a drop in turnover as a result of the corona measures of 28 October 2020 and amending article 9/1 of the Decree of the Flemish Government of 20 March 2020 on the corona nuisance premium;
  • https://www.vlaio.be/nl/subsidies-financiering/vlaams-beschermingsmechanisme-10/wie-heeft-recht-op-het-vlaams.

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