Initially scheduled for January 1, 2024, these VAT changes will be implemented starting in 2025. The Royal Decree introducing these changes was published on October 23, 2024.

Most of the measures detailed below will take effect on January 1, 2025 (with some effective from May 1, 2025): this means they will apply to VAT returns for the 4th quarter of 2024, to be submitted in January 2025/by January 25, 2025, as well as to VAT returns for December 2024, to be submitted by January 20, 2025.

What are these changes, and how will they impact your tax and accounting practices?

 

1 / VAT Return Submission and Payment Deadlines

From January 1, 2025, quarterly taxpayers will benefit from an extended deadline for submissions, moving from the 20th day to the 25th day of the month following the relevant period. The same extension will apply to the quarterly intracommunity listing.

Payments will follow the same timeline: quarterly taxpayers must make VAT payments by the 25th day of the month following the relevant period, instead of the 20th day.

For monthly filers, the deadlines remain unchanged: the submission and payment deadline will continue to be the 20th day of the month following the relevant period.

For special VAT returns (Article 53ter, 1°, of the VAT Code), the final submission date will be the 25th day of the month following the relevant period.

 

2 / Administrative Tolerance and Fines: Stricter Rules

From January 1, 2025, late submission of VAT returns will immediately result in penalties. The administrative tolerance previously allowing submission up to the 30th day of the month is abolished.

For summer months, administrative tolerance may or may not be maintained, depending on a decision by the Minister at the time.

 

2.1 / What about late submissions and non-submissions?

  • Late submissions: Starting January 1, 2025, submitting a VAT return late (up to a maximum delay of five months) will result in a fine of €100 per month of delay, capped at €500.
  • Non-submissions: From the same date, failure to submit within the prescribed deadline will incur fines ranging from €500 (for the first offense) to €5,000 (starting with the fourth offense).

 

2.2 / What about correcting a VAT return?

Currently, administrative practice allows for the replacement of a previously submitted periodic VAT return within 12 months by submitting a new one.

With the elimination of the VAT current account system (see below), such flexibility will no longer be possible, as the balance of the declaration will be processed separately for each period.

How can corrections still be made?

In case of material errors, the new rules are as follows:

  • Corrections to the fields in the VAT return can be made by submitting a new return that cancels and replaces the previous one, provided it is submitted before the filing deadline for the relevant period.
  • If a return is not submitted before the filing deadline, errors must be corrected in the return for the subsequent period.

A "material error" refers to any mistake or omission that does not require issuing or receiving a corrective document.

 

2.3 / What about VAT non-payment?

Currently, delays in VAT payment are penalized with an 8% surcharge on the amount due, plus additional charges of €100 after one month, €200 after two months, etc.

From January 1, 2025, new progressive penalties will apply for VAT non-payment:

  • 5% of the VAT due if the return is filed on time.
  • 10% of the VAT due if the return is filed late (even after receiving a proposed substitute return, see point 3 below).
  • 15% of the VAT due if the return is not submitted and the substitute return becomes definitive.

 

3 / VAT Credit Refunds

Currently, VAT taxpayers can request refunds for VAT credits via their periodic returns. This includes credits from both the current and previous periods.

From 2025, taxpayers will only be able to claim refunds via the periodic return (filed on time) for the credit related to the declared period, subject to two conditions:

  • The last six returns must have been filed on time.
  • The credit amount must exceed €50.

Monthly taxpayers will be entitled to monthly refunds of their VAT credits without prior authorization.

For quarterly taxpayers, there is no change: refunds remain available at the end of each quarter.

For quarterly filers, processing will be completed by the administration no later than the end of the 3rd month following the relevant quarter.

For monthly filers, processing will be completed no later than the end of the 2nd month following the relevant month - a shortening of the processing time for monthly filers, who can also request refunds in each monthly return.

What about accumulated VAT credits from previous periods? These must be recovered through a new procedure: the VAT provision account (accessible via MyMinfin).

Taxpayers can choose to recover the full or partial amount of their VAT credit.

It is important to note that this change introduces another: if the tax administration issues a request for information following a refund request and the taxpayer fails to respond within the deadline, the amount requested may be withheld.

The response deadline will remain one month from the 3rd business day following the issuance of the request, except in two specific cases:

  • When Treasury rights are at risk.
  • When the request is part of verifying a VAT credit from the periodic return.

When will the new provision account rules take effect?

 

Implementation will be gradual:

  • Before May 1, 2025, taxpayers can still receive full VAT credit refunds under the old system, subject to the above conditions (check the "refund request" box in the periodic return).
  • Until May 1, 2025, taxpayers can request VAT credit refunds at any time via MyMinfin, even outside the return. Refunds will be processed within one month, provided a sufficient balance remains after settling tax debts or other deductions and a valid account number has been provided.
  • After May 1, 2025, any remaining amounts in the VAT current account will automatically transfer to the new VAT provision account, from which refunds can be requested via MyMinfin.

Note: The VAT provision account will not apply to VAT credits from special VAT returns, just as the VAT current account does not.

 

4 / New Bank Account Numbers

From May 1, 2025, new bank account numbers will be introduced for VAT payments.

Until this date, the old account numbers will remain valid. However, to avoid confusion, payments made to the old accounts after this date will be automatically transferred to the new ones.

Finally, from 2026, a direct debit payment system (bank mandate via MyMinfin) will be introduced. Taxpayers will be able to activate/deactivate this mandate at their convenience and access details of the various deductions.

 

Need Assistance?

The entire In Extenso Belux team is available to help you implement these changes and analyze the specific impacts on you as a VAT taxpayer.

 

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