Year-end Round Up VAT

Earlier in this series we already commented on the changes in 2024 with respect to the methods of access to the INTERVAT portal as well as on the extended notification obligation for mixed VAT taxpayers.

In what follows, we provide a bullet-point overview of some other key VAT developments, thereby not only focusing on the legislative changes that took effect during 2023 but also anticipating on those that will enter into force in 2024 and later years.

• Extended limitation periods for VAT assessments and extended retention periods for VAT books and documents came into force on 1 January 2023
  (Extended VAT statute of limitations - KPMG Belgium).
• Since 1 January 2023, the application of the reverse charge mechanism for immovable property works is extended to foreign taxable customers who hold a direct VAT registration in Belgium. Before 2023 this was only applicable when the foreign taxable customer was identified for VAT purposes in Belgium via a fiscal representative. Besides that, a specific reference is to be added on the sales invoice by the supplier when the reverse charge mechanism is applied
  (Important changes to the reverse charge mechanism - KPMG Belgium).
• In its Cabot-judgment of 29 June 2023, the European Court of Justice ruled that a Belgian toll manufacturer does not constitute a VAT fixed establishment for its Swiss principal
  (Cabot Plastics Belgium - KPMG Belgium).
• On 1 September 2023, a new circular letter entered into force, clarifying the applicable VAT rules for the provision of company cars to employees in a cross-border context. Foreign employers providing company cars to personnel residing in Belgium may need to perform a Belgian VAT regularization for the period as from 1 July 2021
  (VAT circular on cross-border provision of company cars - KPMG Belgium).
• A draft bill submitted to the Chamber on 23 November 2023 clarifies the new definitive reduced VAT rate regime for demolition and reconstruction, effective 1 January 2024
  (earlier flash in Dutch on the basis of the pre-draft texts: btw-tarief 6% bij afbraak en heropbouw ingeperkt - KPMG België).
• According to a law published on 1 December 2023, electronic interfaces can be held jointly liable with the supplier for the payment of the VAT due, even when these interfaces are not considered as deemed suppliers. This joint liability will apply to VAT due as from 1 January 2024
  (Joint liability for electronic interfaces - KPMG Belgium).
• Via Royal Decree, the entry into force of the “VAT chain” reform with its significant changes to the VAT compliance and VAT refund processes (explained here: Draft bill modernising the “VAT chain” passed - KPMG Belgium) will be postponed to 1 January 2025.
• Mandatory e-invoicing will be introduced for taxable persons (B2B) as from 1 January 2026 (B2B e-invoicing mandatory as of 1 January 2026 - KPMG Belgium).
  Latest press release from 8 December can be found here: Verplichting van het gebruik van gestructureerde elektronische facturen - Tweede lezing | News.belgium (NL) & Obligation d’émettre des factures électroniques structurées - Deuxième lecture | News.belgium (FR).

Please do not hesitate to contact us in case you would like to discuss the potential impact of the above rules for your business.