Coronavirus: Flemish Protection Mechanism first quarter 2022

The Flemish Protection Mechanism scheme is extended for the first quarter of 2022. The principles of the protection mechanism 11 are maintained.

For whom?

This protection mechanism will apply to companies that continue to face operating restrictions and, as a result, experience a drop in turnover of at least 60% in the period of operating restrictions within the first quarter of 2022 and of at least 30% over the entire first quarter of 2022 or were forced to close in this quarter.

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 premium is 10% of the turnover, excluding VAT, in the first quarter of 2019.

The maximum aid for the first quarter of 2022 is:

• €33,750 for companies employing up to and including 9 employees
• €67,500 for companies employing10 to 49 employees
• €180,000 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 operating restrictions period within the first quarter of 2022.
• 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 the turnover, excluding VAT, from supplies included in the VAT return(s) of the 2019 reference quarter. The aid is granted at company level.
• the company must have started up and have an active place of business in Flanders on 1 January 2022.
• 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 2022 must be demonstrated based on the VAT return(s) of the first quarter of 2022 and of the first 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 are compulsorily closed.  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 aid can be applied for and will be paid as soon as the IT system is set up and, of course, after the end of the first quarter of 2022 and after submission of the VAT return(s) for the first quarter of 2022.  It is planned to open the online application on 1 April 2022.

Overview

Source:

• Decree of the Flemish Government of 11 March 2022 concerning the Flemish Protection Mechanism for companies that have suffered a drop in turnover as a result of the corona measures of 28 October 2021;
• https://www.vlaio.be/nl/nieuws/vlaams-beschermingsmechanisme-verlengd-tot-eind-maart-2022