Delayed VAT code modernisation 1 January 2025- improved credit refunds, extended deadlines backed by tougher fines approved
Belgium has gazetted on 23 October delayed compliance reforms (initially planned for Jan 2024). They will go ahead on 1 January 2025.
Learn more about Belgian VAT in our country guide.
VAT repayments, deadlines and new assessment proposals
Three of the major reforms are:
1. Monthly refunds for monthly VAT return filers.
Instead of monthly taxpayers with excess VAT due having to wait until the end of the quarter period end, they will be able to apply for any credit repayments at the end of any month. Presently, this is only permitted with a special authorisation.
2. Extension of quarterly VAT return deadline
Quarterly and monthly Belgian VAT returns must be submitted by the 20th of the month following the period end. The proposals would change this date for quarterly filers only to 25th of the month.
3. Late VAT returns – assessments and penalties
Late or missing VAT returns after the deadline will automatically be assessed for VAT with a tax office generated return assessment – known as a ‘substitute VAT return’. The VAT charge will be based on the highest VAT declared in any return over the prior twelve months. In case of repeated non-submission, the amount of VAT due will be increased according to a scale ranging from 25% to 200% of the VAT due.
Currently, taxpayers incur no late penalties until after the 10th of the second month after the reporting period end.
Other VAT proposals:
- VAT current accounts will be replaced by a ‘provision account’, which means better net refunds of tax credits. The start date has been set at 1 May 2025.
- VAT credit applications will be limited to a single month period
- Any tax office request for information must be replied to within one month
- Credits will only be granted if the taxpayer has at least six months’ clear filing record
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