Linkedin
Facebook
Email
more
In VAT matters, the investigation period is de facto limited by the statutory limitation period for the claim for payment of VAT.
The new Circular 2026/C/31 concerning the amendments to the record retention period, the limitation period in cases of fraud, and the prior notification requirement when applying the limitation period in cases of fraud has recently been published.
Below is a concise overview of the current rules.
VAT RECORD-RETENTION PERIOD
In Belgian VAT law, the retention period is the statutory period during which a taxable person must keep VAT books, invoices and all supporting documents to enable inspection by the VAT authorities.
Under the 2022 reform, this period had been extended from seven to ten years. This extension has now been repealed.
The retention period is once again set at seven years.
The retention period is thus aligned with the new limitation period in cases of fraudulent intent or intent to cause harm (see below).
LIMITATION PERIOD IN FRAUD CASES
In addition to the standard limitation period of three years, the VAT authorities have from now on the 7 years limitation period to assess and claim the tax in cases of fraud.
Under the 2022 reform, the limitation period applicable in cases of fraud was extended to ten years. This extension has since been repealed, and the seven-year limitation period for fraud cases has been fully reinstated.
PRIOR NOTIFICATION IN FRAUD CASES
When the VAT authorities invoke the extended seven-year limitation period, they must inform the taxpayer beforehand, in writing and in sufficiently manner, of the indications of fraud relating to the period concerned.
This procedural safeguard, which had been relaxed in 2023, has now been reinstated in its stricter form through the addition of the word “precisely”. This means that, once again, as was the case before 2023, the person concerned must be notified beforehand, in writing and in a sufficiently precise manner, of the suspicions of fraud.
Failure to comply with this obligation may affect the validity of the tax assessment.
ENTRY INTO FORCE
The reinstated seven-year framework applies to VAT that became chargeable as from 1st of January 2023.
If you would like more information on this topic or need assistance with VAT matters, you can contact the RSM Belgium VAT team at (vat@rsmbelgium.be).
