Flemish Coronavirus Compensation in Practical Terms

Who is eligible for compensation?

The following groups may claim coronavirus compensation:

• People who are self-employed as their main business activity 
• Self-employed people with side ventures and a business income (net taxable income) in 2019 of at least EUR 13,993.78 
• Companies that are legal entities and have at least one full-time equivalent partner or full-time equivalent employee registered with the NSSO, or foreign businesses of comparable status 
• Associations with economic activities and at least one FTE employee registered with the NSSO

What activities are eligible for compensation?

The compensation can only be claimed by active enterprises with primary activities that are explicitly subject to operating restrictions by the authorities.

In practice this concerns the following types of enterprise:

• The event industry and other businesses indirectly affected by closures and cancellations resulting from coronavirus measures 
• Those in (para)medical professions and technical inspection services who may only perform urgent interventions due to the coronavirus measures 
• Providers of services who may only perform urgent interventions or with job sites that have been closed down due to the coronavirus measures 
• Providers of essential services 
• Enterprises that are subject to substantial operating restrictions due to the measures to prevent the spread of the coronavirus

The following activities and enterprises are explicitly excluded from eligibility for compensation:

• Holding companies 
• Asset management companies
• Activities of head offices
• Management companies with a manager providing professional services to a company that has already received compensation and where the same individual is active as a director, partner or manager

What is the loss of turnover requirement?

First, the loss of turnover in the period from 14 March 2020 up to and including 30 April 2020 must be such that there is a decline of at least 60% compared to the turnover for the same period in the previous year (or for start-ups: compared to the financial plan).

Note that this loss of turnover must be demonstrably ascribable to a decline in performance due to the National Security Council’s operating restrictions. Appropriate evidence includes such information as daily income, services performed and time registration data. Simply asserting that business is down due to the decline in demand will not be sufficient. 

What is the amount of compensation?

The following groups qualify for a one-off compensation of EUR 3,000:

• People who are self-employed as their main business activity
• People who are self-employed as a side venture and have an income of at least EUR 13,993.78
• Corporations 
• Non-profit organisations

The following groups qualify for a one-off compensation of EUR 1,500:

• People who are self-employed as a side venture, have an income between EUR 6,996.89 and EUR 13,933.78 and whose wages make up less than 80% of their income
• Self-employed people with side ventures who have been forced to close their business (and are not eligible for nuisance compensation)

Besides the basic compensation per enterprise, companies with multiple business locations may qualify for additional compensation as long as each location employs at least one FTE. The number of possible claims is always limited to a maximum of five claims per enterprise.

How can I apply for compensation?

It is not possible to apply for this compensation yet. VLAIO is aiming to have the digital application module available online by 1 May. Applications must be submitted online by 30 June 2020 at the latest. Companies with multiple business locations must submit a single combined application.

Demonstration of the 60% loss of turnover relies predominantly on the claimant’s honesty. The mandatory retention period for supporting documents is 5 years.

Companies will be informed of whether they have been approved for compensation by email.

How will compensation be paid out?

As soon as the compensation has been approved, the amount will be transferred to the relevant company’s Belgian bank account.

Do you require further information about this compensation? Please contact your account manager or one of our experts at corona@vdl.be.