- Key VAT Reforms Starting January 1, 2025:
- Introduction of direct debit payments for VAT obligations.
- Replacement of the VAT current account with a Provisional VAT account.
- Monthly VAT refunds for businesses filing monthly returns.
- Extended Deadlines and Automated Processes:
- Quarterly VAT return deadlines extended to the 25th of the month following the reporting period.
- Automated issuance of proposed replacement returns if VAT returns are not submitted on time.
- Statutory one-month response period for VAT queries.
- Penalties, Exemptions, and Future Changes:
- Penalties for late payment and non-filing of VAT returns ranging from 5% to 15%, with fines from EUR 50 to EUR 5,000.
- Extension of the 6% reduced VAT rate for demolition and reconstruction projects until June 2025.
- Mandatory electronic invoicing for all B2B transactions starting January 1, 2026, via the Peppol network.
