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Belgian VAT chain reforms delayed to 2025

One-year delay on modernisation of VAT compliance – improved credit refunds, extended deadlines backed by tougher fines approved

Belgium last week gazetted reforms for the administration of VAT returns in an aim to help businesses and curb non-compliance. Once promulgated by the King, it enter into force from 1 January 2024.

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 replaces by a ‘provision account’, which means better net refunds of tax credits.
  • 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

Preparing Belgian or global VAT or GST returns is complicated, time consuming and high with tax liability risks.  VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditor integrated tools.


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