The Belgian VAT legislation will be amended as from 1 January 2023 regarding the statute of limitation, the retention period and applicable interest rate.
In addition, a draft law is approved and should modernize the VAT chain and the processing of periodic VAT returns as from 2024.
2023: Extension of VAT statute of limitation
To date, the statute of limitation expires in principle at the end of the third year, following the year during which the VAT became due. In quite a number of cases, this period is extended to seven years.
As from 1 January 2023, the following prescription periods will apply for VAT:
- 3 years: standard period;
- 4 years: if a periodical VAT return is not filed, or filed too late;
- 7 years: if VAT exemptions or a VAT deduction is applied incorrectly, or information is requested from other countries;
- 10 years: in case of fraud.
2023: Retention period
Also, the retention period is changed from seven years to ten years. Note that for immovable goods, this even amounts to 15 years (or even 25 years).
2023: VAT interest rates
The interest rate is currently fixed at 0.8% per month (or 9.6% on an annual basis).
To harmonise interest rates in tax matters, the new rate will be determined as follows:
- for late payment interest (interest due to the Belgian State): 4% on top of the income tax rate
(for 2023: 8 %/ year);
- for moratorium interest (interest in favor of the taxable person): 2 % on top of the income tax rate (for 2023: 6%).
2024: “VAT chain” reform
The new "VAT chain" regime is expected to come into force from 2024 and introduces the following changes:
- The VAT current account will be abolished: the VAT current account will be replaced by the VAT provision account from which it will be possible to reclaim all or part of your VAT credit or to reallocate the remaining balance to another type of debt (i.e. via MyMinfin). A refund request via the VAT return will only be possible for the reporting period concerned.
- New declaration period: the deadline for the submission of quarterly VAT returns will be extended to the 25th of each month. For monthly VAT returns, the deadline for submission remains unchanged (i.e. the 20th of each month) and both will be applied strictly.
- Late submission: in case of late submission of the VAT return, the taxable person will receive an automatic VAT return proposal at the end of a period of 3 months following the relevant return period. This proposition will be based on the highest VAT due position of the previous twelve months with a minimum amount of VAT due of €2.100.
If you have any questions or want some help regarding the above, please do not hesitate to contact us at: [email protected]
RSM Belgium | Tax