Belgium – Changes in 2025: Failure to submit VAT returns on time can cost you dearly!

Current Penalties and Challenges: Companies may inadvertently miss filing VAT returns due to unforeseen circumstances like illness or disasters. Currently, Belgian tax authorities impose fines of €100 per declaration per month of delay, up to €1,000, and €1,000 for non-filing.
Stricter Rules from 2025: Starting January 1, 2025, if VAT returns are not filed on time, authorities will impose fines after three months and propose a substitute return, claiming the highest VAT amount from the past year, with a minimum of €2,100.
Response and Legal Context: Companies have one month to file the missing return to cancel the substitute. Failure to do so makes the substitute final, but companies can appeal. The alignment with income tax practices is controversial due to VAT’s unique European rules.