- Changes to the VAT Chain: The Belgian government will introduce a reform of the VAT chain effective from January 1, 2025, with some parts starting on February 1, 2025. These reforms include:
- Direct Debit Payments for VAT: Businesses will be able to pay their VAT obligations via direct debit.
- Abolishment of the VAT Current Account: The VAT current account will be replaced by a Provisional VAT account.
- Monthly Refunds for Monthly Filers: Businesses that file monthly VAT returns will receive VAT refunds monthly, automatically.
- Extended Deadlines for Quarterly VAT Returns: Quarterly VAT return deadlines will be extended, with the new deadline falling on the 25th of the month following the reporting period.
- Automated Management for Unfiled Returns: If a VAT return is not submitted on time, the Belgian Administration will automatically issue a proposed replacement return after three months.
- Statutory Response Period for VAT Queries: A one-month statutory response period for VAT queries will be introduced.
- Penalties for Non-Compliance: Penalties for late payment or non-filing of VAT returns will range from 5% to 15%. Separate penalties for non-submission and late submission of returns will be introduced, with fines ranging from EUR 50 to EUR 5,000.
- Extension of Reduced VAT Rate for Demolition and Reconstruction: The reduced VAT rate of 6% on demolition and reconstruction projects in Belgium has been extended until the end of June 2025. This extension applies to specific projects in 32 cities and municipalities, with certain conditions, including building permit submission before January 1, 2024 and payment of VAT by June 30, 2025.
- Increased VAT Exemption Turnover Ceiling for Small Businesses: The Belgian Chamber of Representatives has accepted a bill to increase the VAT exemption turnover ceiling for small businesses to 35,000 euros. The previous ceiling was 25,000 euros.
- Mandatory Electronic Invoicing: From January 1, 2026, Belgium will require mandatory e-invoicing for all B2B transactions through the Peppol network. Microenterprises and B2C transactions are excluded.
- Changes to Customs Formalities: Electronic systems (AES, IDMS, NCTS 5) will be the only source for valid customs data. Paper prints will no longer be available. The mandatory use of the Automated Export System (AES) has been postponed to November 18, 2024. The bulk export procedure will also be impacted and will require a new procedure starting November 29, 2024.
- VAT Treatment of Land with Foundations: The CJEU ruled that land with only foundations cannot be considered a “building” for VAT exemption purposes. This ruling has implications for Belgium, where the definition of “building” is crucial for VAT treatment.
- VAT Deduction Adjustment Periods: While standard VAT adjustment periods are five years for business assets, immovable assets like buildings have an extended 15-year period. The CJEU clarified that major renovations can qualify for the 15-year period, especially when significantly altering a building’s use.
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