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Your contact person for this topic:
Thomas Hermie
Tax lawyer
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Contact:
- +32 11 29 47 01
- t.hermie@euregio.law
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Further publications on this topic:
- New VAT exemption for small businesses in Belgium and the EU from 2025
- E-commerce in Belgium: VAT regulations
- Status of VAT modernization and e-invoicing
- EU reaches agreement on new ViDA proposal to modernize the VAT system
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More on this topic:
- VAT
From 2025 onwards, certain Belgian VAT obligations will change due to a modernization of the ‚VAT chain‘.
By Royal Decree published on 23 October 2024, the following new VAT rules and procedures will enter into force in Belgium from 1 January 2025:
1. Submission of VAT returns in Belgium from 2025
- The submission deadline for periodic VAT returns and intra-Community declarations, as well as the corresponding payment deadline, is extended by five days to the 25th following the quarter in question for quarterly declarants. There is no change for monthly declarants (the filing and payment deadline remains the 20th of the following month).
- All taxable persons who file monthly can now automatically reclaim VAT credits on a monthly basis (no special authorization is required).
2. Application for VAT refund in Belgium
- Applications for a refund of a VAT credit must now be made immediately via the VAT return from which the VAT credit resulted. If this is not done immediately, the VAT credit will be entered in the so-called ‚VAT commission account‘ (see next point). This entry will trigger an additional VAT check by the VAT administration. In future, therefore, both the refund application and the entry in the commission account may trigger a VAT check.
- The present so-called current account and special account in the event of late returns and non-payment of VAT debts for the management of payments, refunds, debts and credit balances will be replaced by the new ‚VAT commission account‘ from 1 May 2025. Via this account, VAT credits that were not immediately reclaimed via the VAT return can be reclaimed later or used to settle VAT debts.
3. Penalty for late payment or declaration of VAT in Belgium
- In the event of non-payment or late payment of VAT, the VAT authorities will impose a proportionate fine (up to 15% of the VAT) more quickly and more severely. In future, the taxpayer will no longer be sent a payment reminder in advance. In addition, the fine for failure to submit or late submission of periodic tax returns will be multiplied by a factor of 2.5 to 10, depending on the number of offences of the same type in the previous 4 years.
- In the event of (persistent) late or non-submission of VAT returns, the administration will issue a replacement return after a period of 3 months. This replacement return will result in a VAT liability equal to the highest VAT amount due from the VAT returns of the previous 12 months, but at least 2,100 EUR in VAT. The taxpayer then has 1 month to contest this by submitting their periodic VAT return. If they fail to do so, the replacement return becomes final and can only be contested by means of an administrative appeal or legal action.
- A statutory time limit for responding to requests for information is introduced. In principle, this response period is 1 month from the 3rd working day after the request for information is sent, in some cases even just 10 days (e.g. in the case of a refund check).
- From 2025, taxpayers will also be able to pay their VAT debts by direct debit.
- Corrections to previous material errors (e.g. forgotten or incorrectly reported invoices, an excess input tax deduction, etc.) can only be made before the actual submission deadline (i.e. the 20th or 25th day of the following month) or in the first subsequent VAT return after the error has been identified. It is therefore no longer possible to submit a replacement VAT return for the past after the statutory submission deadline.
Contact
Do you have any questions?
Do you have questions about VAT in Belgium and intra-community transactions within the EU? If so, please contact our VAT lawyer Thomas Hermie.
