Belgium – Changes to modernise the VAT procedure as well as VAT collection
Background
On January 1, 2025, the bill to modernise the VAT procedure and the collection of VAT in Belgium came into force.
This ambitious project is of key importance not only for the Belgian Tax Authorities, but also for companies VAT registered in Belgium.
The aim is of this measure is to offer greater flexibility, clarity and simplification to encourage compliant behaviour.
What’s new for VAT registered businesses
- Deadline extensions: companies who file Belgian VAT returns on a quarterly basis will benefit from longer filing and payment deadlines, i.e the 25th of the month following the period
- The removal of the possibility to file an amended periodic VAT declaration after the filing deadline for the period. If, however, taxpayer discovers a material error after the legal filing deadline, the correction can be reported in the next VAT return
- Introduction of a response deadline for inquiries. The taxpayer must now respond within one month starting from the 3rd working day after the request was sent
- Introduction of a proposal for a substitute declaration in the event of failure to file a periodic VAT return. If you do not file your periodic VAT return within 3 months of the reporting period, the Belgian Authorities will draw up a proposal for a substitute return
- New penalties introduced
- The VAT provision account to replace the current VAT account
- Simplified management via MyMinfin. Consultation and management of the financial overview in a single portal
- Adapted rules for VAT refunds
- New account numbers for VAT payments
- The possibility to pay VAT via direct debit
These new changes will be introduced gradually between 1st January 2025 and the beginning of 2026.
We encourage businesses to review the above rules to assess how it can impact their day to day VAT compliance.
Shall you wish to obtain more details, please contact us.