Is Retroactive Registration for VAT Deduction Still an Option in Belgium?

• Mixed taxpayers in Belgium can exercise their right to VAT deduction through Article 46, § 1 of the VAT Code.
• VAT deduction can also be exercised through the system of actual use, but taxpayers must register ‘previously’ through an electronic notification.
• There is a transitional procedure for taxpayers who applied actual use before 2023, but it expired on June 30, 2023.
• If there was no timely prior notification in 2023, the right to deduction cannot be exercised based on actual use for that year.
• The VAT authorities only accept corrections in exceptional cases for previous calendar years, considering the principles of actual use and if the taxpayer acted in good faith.
• Despite the official stance that retroactive registration for 2023 is not possible, there are signals that it is being tolerated in practice with a maximum penalty of €100 per month of delay.
• An official announcement is expected soon regarding the stance on retroactive registration.

Source: vat-consult.be

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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