VAT Reform in Belgium

The Belgian Ministry of Finance has issued a Royal Decree that outlines changes to the country’s VAT rules. The changes will take effect as of 1 January 2025 and deal with a wide range of procedural aspects of the VAT system. Specifically:

• Direct debit payments will be offered as an option to tax payers that are VAT registered in Belgium;
• Failure to file a VAT return will trigger an automated assessment which will estimate the VAT due.
• Failing to file a VAT return will attract a penalty that can range from EUR 500 to EUR 5,000 per return. Currently a fixed penalty of EUR 1,000 is applicable.
• Taxpayers filing monthly VAT returns will now be able to receive a VAT refund of their credit on a monthly basis.
• The VAT current account system currently in use will be replaced by the VAT provision account system. The new system will allow taxpayers to manage their VAT refunds and credits directly from their account as well as settle other tax liabilities.
• Filing deadlines for special and quarterly VAT returns will be aligned to provide more consistency to the filing process. The deadline will be the 25th of the month following the relevant reporting period.

If you have any questions on the proposed changes please reach out to us.