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Mixed taxable persons who wish to (continue to) exercise the right to deduct input VAT in accordance with the general pro rata method must confirm this to the tax authorities by 1 July 2024.
Last year, the mandatory notification of the application of the right of input VAT deduction in accordance with the actual use method was already introduced. Both methods also require additional information to be provided.
Notification
The electronic notification of the application of the general pro rata method must be done via the form e-604A (start of VAT activity) or e-604B (change of VAT activity) and this before:
- 1 July 2024, if you already used the general pro rata method before 31 December 2023;
- the end of the reporting period in which you start your activity;
- the end of the reporting period in which you become a mixed taxable person due to the change of your activity.
In addition, you must also communicate your provisional and final general pro rata via Intervat when submitting the following periodic VAT return:
- Taxable persons filing quarterly VAT returns: Q1 2024 VAT return (20 April at the latest);
- Taxable persons filing monthly VAT returns: one of the first three VAT returns (20 February, 20 March or 20 April at the latest).
Information to be provided
The final general pro rata for the previous calendar year as well as the provisional general pro rata for the current year must be communicated when submitting the periodic VAT return over the first quarter (no later than 20 April) or one of the first three months of the current calendar year (no later than 20 February, 20 March or 20 April). Any revisions must also be included in the same VAT return.
Changing from the actual use method to the general pro rata method
If you are applying the actual use method, this method will be applicable at least until 31 December of the third year after the date of the notification. This implies that you can only apply for the general pro rata method at the end of that 3-year period by submitting a notification via the form e-604B (change of VAT activity) choosing the general pro rata method. The change will take effect as from 1 January of the year following the notification.
The VAT team of RSM Belgium ([email protected]) is happy to assist you with any questions regarding this matter.
