Belgium’s VAT “chain” rules have undergone significant changes, which should simplify processes, increase transparency and improve tax compliance (for prior coverage, see the alert dated 31 October 2024). (VAT chain is the official name given by the tax authorities to the series of compliance/procedural changes to the rules.)
The main changes affect the filing and payment of VAT, which (unless otherwise noted) apply as from 1 January 2025:
Belgium’s VAT compliance rules have become stricter, with the result that the VAT administration will likely focus on ensuring that the VAT obligations are respected and more intensive VAT audits will take place in cases of noncompliance. Taxpayers should take steps immediately so that they are prepared to comply with the new rules to avoid fines and other sanctions. The VAT administration can send enquiries to the VAT taxpayer both when a VAT refund request is made in the VAT return and when a VAT credit is being transferred to the provision account. Furthermore, the new VAT rules regarding corrections implies that corrections of submitted VAT returns can only be performed within the statutory filing deadline.
BDO in Belgium
The main changes affect the filing and payment of VAT, which (unless otherwise noted) apply as from 1 January 2025:
- Filing deadlines: The deadline for filing the quarterly VAT return and paying VAT due, as well as the quarterly intra-Community Sales Listing, is extended from the 20th to the 25th day of the month following the relevant quarter.
- Corrective/revised VAT return: Corrective/revised VAT returns may no longer be filed after the statutory filing deadline; instead, the revised data must be included in the next VAT return.
- Response to request for information: Taxpayers must respond to a request for information from the VAT administration within one month from the date of receipt. This deadline can be extended or shortened (for legitimate reasons or if the Treasury’s rights are at risk.
- Substitute VAT return: If a periodic VAT return is not submitted within three months after the taxable period, the VAT administration will generate a “substitute VAT return.” The administration will calculate the VAT amount due in the substitute return based on the highest VAT amount due in the previous 12 months (with a minimum of EUR 2,100). Upon receipt of the substitute VAT return, the taxpayer has one month to correct it by filing an accurate VAT return for the relevant period. If the substitute VAT return is not corrected/filed in time, the taxpayer can only take further actions via an administrative appeal or a legal court claim.
- VAT refund: Starting on 1 May 2025, the current VAT account will be abolished and replaced with a new “provision account” that will be used for VAT credits that are not immediately claimed. VAT credits may be reclaimed through the periodic VAT return for the amount reported in box 72 of the VAT return. If no refund is requested, the credit will be transferred to the provision account. The VAT credit must then be requested for a (full/partial) refund via a separate request in the MyMinfin platform. The tax authorities are expected to issue further guidance on the process for refunds.
- Penalties: New and stricter proportional and non-proportional fines will be imposed for late or non-filing/payment of VAT returns/VAT due. Current administrative tolerances will be abolished.
- Changes to bank account numbers for VAT payments: Also starting on 1 May 2025, the following bank account numbers must be used:
- Bank account number BE41 6792 0036 4210 for advance payments on the provision account, payment of periodic VAT returns, late payment interest and fines without an enforceable title.
- Bank account number BE42 6792 0000 0054 for all payments related to the periodic VAT return, substitute VAT return and other VAT debts with an enforceable title.
- MyMinfin account: Starting some time in mid-May 2025, taxpayers will be able to see an overview of all outstanding amounts receivable and due in one central location on MyMinfin.
- New payment method: As from 2026, taxpayers will be able to have VAT payments automatically debited from their bank account. This will simplify the payment process and can be activated or cancelled at any time via the MyMinfin platform.
BDO Insights
Belgium’s VAT compliance rules have become stricter, with the result that the VAT administration will likely focus on ensuring that the VAT obligations are respected and more intensive VAT audits will take place in cases of noncompliance. Taxpayers should take steps immediately so that they are prepared to comply with the new rules to avoid fines and other sanctions. The VAT administration can send enquiries to the VAT taxpayer both when a VAT refund request is made in the VAT return and when a VAT credit is being transferred to the provision account. Furthermore, the new VAT rules regarding corrections implies that corrections of submitted VAT returns can only be performed within the statutory filing deadline.BDO in Belgium