Coronavirus: NSSO: compensation premium for suppliers too

The compensation premium available to employers in sectors that have had to close due to the health crisis has now been extended to the suppliers of these employers.

What is meant by “suppliers”?

To access this compensation premium, you must:

1. Be an employer in the private sector;
2. Be a direct supplier to employers that have had to close to the public (we invite you to view the sectors concerned in our infoflash of 13 November 2020)

At least 20% of your turnover in 2019 must have resulted from good and/or services supplied to these companies that have had to close. If you started your business in 2020, at least 20% of your turnover in 2020 must result from goods and/or services supplied to these companies.

3. Still be in business at the end of the 3rd quarter of 2020 (i.e. 30 September 2020);

The NSSO singles out 2 categories of suppliers:

You are subject to VAT and you make a periodic VAT return:

You must meet two conditions:

1. At least 20% of your turnover in 2019 must have resulted from good and/or services supplied to these companies that have had to close. If you started your business in 2020, at least 20% of your turnover in 2020 must result from goods and/or services supplied to these companies.
2. See a decrease of at least 65% in turnover resulting from transactions to be included in box 2 of your VAT return for the 2nd quarter of 2020 compared to the turnover resulting from the same transactions to be included in box 2 of your VAT return for the 2nd quarter of 2019 or in the 1st quarter of 2020;

OR see a decrease of at least 65% in turnover resulting from transactions to be included in box 2 of your VAT return for the 4th quarter of 2020 compared to the turnover resulting from the same transactions to be included in box 2 of your VAT return for the 4th quarter of 2019 or in the 3rd quarter of 2020

You are subject to VAT and you do not make periodic VAT returns or you are not subject to VAT:

You must meet two conditions:

1. At least 20% of your turnover in 2019 must have resulted from good and/or services supplied to these companies that have had to close. If you started your business in 2020, at least 20% of your turnover in 2020 must result from goods and/or services supplied to these companies.
2. See a decrease of at least 65% in the wage bill declared to the NSSO in the 2nd quarter of 2020 compared to the 2nd quarter of 2019 or in the 1st quarter of 2020;

OR see a decrease of at least 65% in the wage bill declared to the NSSO in the 4th quarter of 2020 compared with the 4th quarter of 2019 or in the 3rd quarter of 2020

Your Payroll Consultant can help you determine the amount of the wage bill for the quarters concerned. Do not hesitate to contact him.

What is the amount of your compensation premium?

You are entitled to this premium for all your employees.

The amount of the premium corresponds to the higher of these two amounts:

• the amount of the basic social security contribution (less any reductions in contributions) for the 1st quarter of 2020 and of the solidarity contribution payable by you for the 1st quarter on student employment;
• the amount of the basic social security contribution (less any reductions in contributions) for the 3rd quarter of 2020 and of the solidarity contribution payable by you for the 3rd quarter on student employment.

The amount of the premium will not be paid to you but will be deducted from the amounts that you owe to the NSSO:

• for the 1st quarter of 2021 if you have applied for the premium based on a reduction in the turnover or in the wage bill relating to the 2nd quarter of 2020
• for the 2nd quarter of 2021 if you have applied for the premium based on a reduction in the turnover or in the wage bill relating to the 4th quarter of 2020

and then, where applicable, from other amounts owed to the NSSO with deduction from the oldest debt.

If a balance remains after allocation, you may request its payment from the NSSO. If you do not do so, this balance will not be lost but will be deducted by the NSSO from the first amounts coming due.

How should you apply for this premium?

You must submit your application:

• before 15 January 2021 if you are applying for the premium based on a reduction in the turnover or wage bill for the 2nd quarter of 2020 compared to the 2nd quarter of 2019 or 1st quarter of 2020
• before 15 February 2021 if you are applying for the premium based on a reduction in the turnover or wage bill for the 4th quarter of 2020 compared to the 4th quarter of 2019 or in the 3rd quarter of 2020

via an online form in the on-line application of the NSSO. You must declare on it that you meet the conditions required to be entitled to the premium.

The NSSO will inform you if you are entitled to the premium as well as its amount.

If you are entitled to this premium (supplier compensation premium) but have already received the compensation premium referred to in our infoflash of 13 November 2020 (closure compensation premium), the NSSO will compare the two amounts. The amount of the “supplier” premium will be the amount of the difference between the “closure” premium and the “supplier” premium.

Source: www.socialsecurity.be; Royal Decree of 16 December 2020 implementing Article 15 of the Law of 24 November 2020 on support measures in the context of the COVID-19 pandemic, Belgian Official Gazette 21.12.2020