Principal data sources

Repertory of production units

The estimate of GDP is based on the business register compiled by the National Statistical Institute (NSI). This database contains all economic agents active in Belgium9_{. The basic}

8 _{“In general, we can say that the criteria for completeness are: the existence of an accurately determined reference} universe of production units, the possibility of determining whether units are missing, the possibility of making adjustments for missing units and the existence of general systematic adjustments for evasion and undeclared labour.” GNP Committee, CPNB/166 (Eurostat), Report to the Council and The European Parliament on the application of the Council Directive on the determination of GNP at market prices, 1995, §2.4.

9 _{Enterprises which are not registered for VAT are not considered legal persons and do not employ staff are currently} missing. The intention is to include these producers in the register in the near future.

54 BELGIUM

information for compiling the register is supplied by a number of government agencies (VAT, Department of Social Security [DSS], National Register) which maintain partial records of units for their own purposes (namely enterprises registered for VAT, businesses employing staff and legal entities).

On the basis of this register, the NBB constructs a repertory each year, containing for all enterprises (companies, self-employed persons, NPIs) identification numbers and characteristics relevant for the national accounts. By using the combination of the following characteristics, it is possible to calculate in a detailed and standardised manner the administrative aggregates (e.g. turnover, purchases, wages) from which the ESA95 variables will be calculated at a later stage, and to select the most appropriate basic source:

• NACE code (determines the branch to which the unit belongs);

• category (determines which basic source10 _{is used to estimate the activity of the} unit);

• institutional sector code (determines the institutional sector in which the unit is included).

The aggregation of variables available in the different source files is always based on the characteristics (NACE code, sector code) entered in the repertory. This method ensures that the results obtained via different sources are mutually comparable. The basic aggregates at national level are always calculated per branch and per institutional sector.

Principal basic sources 11

The method of calculation makes maximum use of administrative data. The principal administrative sources are the annual accounts filed by non-financial companies, the VAT returns of VAT-registered enterprises, and the returns from the Department of Social Security (DSS) and the Department of Social Security for Provincial and Local Public Services (DSSPLPS) submitted by employers.

In Belgium, virtually all limited liability companies have to publish their accounts in accordance with a standardised format laid down by law, at the Central Balance Sheet Office of the National Bank of Belgium. The annual accounts file is therefore the preferred source for estimating the ESA95 aggregates for the production and primary generation of income account for non- financial companies.

Large companies12 have to file accounts using the full format; SMEs are allowed to use the short format. These reporting formats are in fact data extracts from the internal accounts of the enterprises, where large companies have to supply more information than SMEs.

10 _{The categories used in the case of non-financial enterprises help to determine the selection of the preferred basic} source for calculating the administrative aggregates.

11 _{The description of the source material and the method of calculating value added is confined to those sectors for} which adjustments for the underground economy are relevant, namely non-financial corporations (S11) and households (S14).

12 _{An enterprise is regarded as large for the purpose of company law if: a) the average size of its workforce on an} annual basis exceeds 100, or b) it exceeds more than one of the following thresholds: b1) annual average workforce: 50, b2) annual turnover (excluding VAT): EUR 6.25 million, b3) balance sheet total: EUR 3.12million. An enterprise with separate legal personality which does not fulfill these criteria comes under the SMEs (small and medium-sized enterprises).

All enterprises with a turnover of more than 0.5 million Euros must adhere to the ‘Minimum Standardised Accounting System’. This accounting plan (introduced by the Royal Decree of 1983) puts into practice the legislation on book-keeping and annual accounts of enterprises, dating from 1975. The accounting laws specify the content of the various headings in the balance sheet and profit and loss account (revenue and expenses). In this way, the accounting plan specified for book- keeping purposes can be translated into the breakdown of transactions according to the ESA95.

The VAT returns are used to deduce the turnover (proxy for P1), current purchases of goods and services (proxy for P2) and purchases of investment goods (proxy for P51). The information on turnover and current purchases is used in most branches to estimate the value added of units registered for VAT included in the household (S14) sector, and to produce an additional estimate for the activities of companies for which no (usable) annual accounts are available.

The activity of most non-financial enterprises (supply of goods and services) comes under the VAT rules. Only a small number of activities are exempt from VAT (legal services, medical services, letting of property).

All employers established in Belgium must submit a quarterly return to the DSS or DSSPLPS. The amounts of the social security contributions due are calculated on the basis of DSS and DSSPLPS returns. From the information stated in these returns, it is possible to calculate the compensation of employees (D1).

In some branches of the service activities, the wage bill is used to estimate the value added of companies with no annual accounts and NPIs placed in the non-financial corporation sector (S11).

3.2 Calculation of the value added of non-financial enterprises