Coronavirus: Flemish Protection Mechanism November-December 2021

Author: Jonas Verplanken (Legal Expert)
Date:

To deal with the ongoing impact of the Coronavirus, the system of the Flemish Protection Mechanism will be continued in the period from 20 November 2021 to 31 December 2021 for companies that continue to face operating restrictions and, as a result, experience a drop in turnover of at least 60% over the period from 20 November to 31 December 2021 and of at least 30% in the fourth quarter of 2021 or were forced to close during that period.

For whom?

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

  1. the operation of party venues
  2. the operation of holiday residences
  3. the operation of youth residences
  4. socio-cultural activities
  5. the operation of travel agencies
  6. the activities related to passenger transport
  7. event or cultural activities
  8. the operation of events or culture venues
  9. the operation of night shops
  10. sports activities
  11. the operation of cinemas
  12. the operation of night clubs or dance halls
  13. the operation of indoor playgrounds
  14. the operation of recreation parks
  15. the operation of recreational areas
  16. the operation of gambling businesses, the operation of casinos, slot machine halls or betting shops.

For the other conditions and the related NACE codes, please refer to the Vlaio website on this subject.

How much?

The aid amounts to 10% of half of the turnover excluding VAT for the period from 1 October 2019 up to and including 31 December 2019.

The maximum aid amount for the period from 20 November 2021 up to and including 31 December 2021 is:

  • € 11,250  for companies employing up to and including 9 employees
  • € 22,500 for companies employing10 to 49 employees
  • € 60,000 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:

  • a drop in turnover of at least 60% must have been suffered in the period from 1 November 2021 up to and including 31 December 2021.
  • the company must demonstrate a drop in turnover, excluding VAT, of at least 60% compared to the turnover, excluding VAT, of the same period in 2019, i.e. the reference period. The drop in turnover must be certified by a certified bookkeeper, accountant or company auditor based on the turnover as stated in the VAT returns.
  • the aid is calculated on half of the turnover, excluding VAT, from supplies included in the VAT return(s) of the fourth quarter 2019 . The aid is granted at company level.
  • the company must have started up and have an active place of business in Flanders on 1 October 2021.
  • the company must remain open during the subsidy period unless it was forced to close or is closed due to annual leave.
  • 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. Aid is granted only on the basis of the turnover actually achieved as included in the VAT return(s) in the reference period.

In addition, a drop in turnover of at least 30% in the entire fourth quarter of 2021 must be demonstrated based on the VAT return(s) of the fourth quarter of 2021 and of the fourth quarter of 2019. For the sectors that were forced to close, the obligation to demonstrate the drop in turnover does not apply for the period they were forced to close. They obtain the aid for the days they are closed or may apply for aid for the entire subsidy period if they meet the requirements with regard to the drop in turnover.

For the other conditions, please refer to the Vlaio website.

How to apply?

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

The application must be submitted on-line. An application can be submitted from 14 February 2022 up to 31 March 2022, 8 p.m.

Together with the on-line application Flemish Protection Mechanism 11, the company can also apply for the aid for the month of January 2022.

Renewal anticipated first quarter 2022

In principle, the Flemish government has already approved the decree with targeted protection measures for companies that suffered a drop in turnover due to the coronavirus measures in the first quarter of 2022.

Overview

 

Targeted protection mechanism

July-September 2021

Protection mechanism

End 2021

Scope of application

Certain sectors*

Certain sectors*

Submit application until

16/9/2021

31/3/2022

Reference period for drop in turnover

July-September 2019

20/11 - 31/12/2021 and fourth quarter 2021.

Drop in turnover

60%

30 / 60 %

Aid

10% of turnover

10 % of half of the turnover

Minimum amount of the aid

No minimum

No minimum

Maximum amount of the aid

€ 22,500

€ 45,000

€ 120,000

€ 11,250

€ 22,500

€ 60,000

Legal source

DFG 10/09/21

DFG 21.01.2022

Source:

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