- Implementation of VAT Reform: The reform of the VAT chain in Belgium will come into effect on January 1, 2025, with some provisions starting on February 1, 2025, introducing significant changes in compliance and procedural measures for VAT payers.
- Key Changes in VAT Procedures: The reforms include extending the declaration and payment term for quarterly filers, abolishing the VAT current account in favor of a VAT provision account for unclaimed credits, and allowing direct debit payments for VAT debts.
- Refund Procedures and Penalties: A new refund procedure mandates that VAT credits can only be requested via the VAT return if certain conditions are met, with a minimum credit threshold of €2.50. Non-payment or late payment will incur proportional fines, and persistent non-filing will lead to substantial penalties.
- Introduction of New Compliance Measures: The reform establishes a statutory response period for information requests, and corrections of errors in VAT returns must be made within a specific timeframe, with no allowance for resubmitting past returns.
- Increased Formality and Compliance Obligations: The VAT procedure is becoming more formalized, similar to direct tax processes, necessitating strict adherence to compliance obligations by taxpayers. Regular monitoring of administrative procedures will be essential to avoid penalties and ensure timely filing.
- Source: Tiberghien https://www.tiberghien.com/nl/4124/de-nieuwe-btw-ketting-belangrijke-wijzigingen-vanaf-1-januari-2025
