Furnished accommodation: when is VAT charged?

Elise De Ketelaere   |  

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Since 1 July 2022, the VAT regulations on furnished accommodation have changed. Following this change, a FAQ has already been published. The VAT administration has also published a new notice aiming further to clarify the distinction between VAT-exempt and VAT-taxed furnished accommodation.

This notice largely reflects what has already been published and therefore contains little news.

To assess whether the establishment normally provides accommodation to paying guests for less than three months, the FAQ was based on the turnover criterion (financial pro rata).

A second criterion is now permitted in the new notice: physical pro rata (the total duration of overnight stays of less than three months is greater than the total duration of overnight stays of three months or more).

In addition, the notice gives more information on the right to deduct VAT (normal, mixed, and partial taxpayers) as well as regarding the revisions, whether or not to the taxpayer’s benefit.

In principle, it is also possible to deduct historical VAT linked to several conditions and implementation modalities.

The notice stipulates that when a natural or legal person has purchased goods in the capacity of a non-taxable person and subsequently obtains the status of a taxable person and uses it as a means of business for their economic activity, it is not permitted to deduct all or part of the tax levied on the purchase of these goods.

Our Bofidi experts will be happy to assist you further.

Do you have specific questions about this new notice or need assistance?

Please do not hesitate to contact us. The Bofidi vat-team will be happy to assist you further.