In general, it is not required anymore to pay VAT advances. An exception to this general rule remains the VAT advance to be paid during the month of December.
Every VAT taxable person who’s VAT return concerning the third quarter or concerning the month of November results in a VAT payable amount, is liable to pay an advance by 24 December at the latest (if the VAT taxable person fails to comply to this obligation, late payment interest at 0.8% per month are due).
The VAT taxable person is free to choose one of the following methods in order to determine the amount of the December advance:
- Advance payment equal to the VAT amount due over the third quarter (for VAT taxable persons filing quarterly VAT returns) or over the month of November (for VAT taxable persons filing monthly VAT returns), i.e. box 71 of that VAT return;
- Advance payment equal to an amount which is based on the actual VAT payable amount over the period from 1 October to 20 December (for VAT taxable persons filing quarterly VAT returns) or from 1 December to 20 December (for VAT taxable persons filing monthly VAT returns). In order to calculate the actual VAT payable amount, you can work with an “intermediate VAT return” in which you calculate the difference between the VAT due and VAT recoverable amounts. This intermediate VAT return is not required to be submitted, but it must be retained for audit purposes. In addition, the amount of the December advance must be mentioned in box 91 of the VAT return over the fourth quarter or the month of December (even when the advance payment amounts to zero).
The advance has to be paid by 24 December at the latest, by using the same reference and bank account number as for regular VAT payments.
The advance payment will be settled with the final VAT amount which results from the VAT return over the fourth quarter or the month of December. A possible refundable VAT amount will automatically be transferred to the next VAT period, unless a reimbursement has explictely been requested by the VAT taxable person.
If you would like to receive additional information on this matter, the tax team of RSM Belgium is at your disposal (int[email protected]).