There are some new updates concerning VAT. We would like to list the most important ones.
Only digital communication with the VAT administration
From now on, you must communicate the taxable changes of the 604A, 604B or 604C documents to the VAT administration via a secure electronic platform. That is, not by email or post. Taxable persons who cannot identify themselves on the secure platform, such as, for example, foreign taxable persons who only have a Belgian VAT number, may communicate in another way with the VAT administration.
Application of the actual use
Mixed taxable persons who determine their right to a deduction based on actual use, and therefore not on the overall ratio, must communicate the application of the actual use as of 1 January 2023 via electronic means using e-form 604A or 604B. If the actual use is applicable, you must continue to apply it until 31 December of the third year following the date of that notification.
If you wish to apply the actual use, you must communicate this electronically before the end of the first reporting period (month or quarter). The joint taxable persons who already exercise their right to deduct VAT based on actual use on 31 December 2022 must communicate this electronically before 1 July 2023.
Furthermore, taxable persons who apply the actual use must communicate the following information to the VAT administration when they declare their revision (monthly taxpayers included in the VAT declaration of January, February or March, and quarterly taxpayers included in the first quarter tax return):
- the final ratio of the previous calendar year;
- the percentage of: the VAT amounts at cost, which have been granted full deduction, the VAT amounts at cost, which have not been granted deduction, and the VAT at mixed cost;
- the specific ratio used for mixed costs.
Transfer of tax on work in real estate
As of 1 January 2023, the transfer of tax on work in real estate can also be applied if the foreign client is registered for VAT purposes by direct registration. Until the end of this year, only the tax transfer on work in real estate can be applied if the foreign client has a Belgian VAT number via a responsible representative (Article 20 R.D. Nr 1).
As of 1 January 2023, the provider carrying out work in real estate must enter the following on their sales invoice
“Reversal of taxation. In the absence of a written dispute within one month of receipt of the invoice, the client shall be deemed to recognise that they are a taxable person until the submission of periodic declarations. If that condition is not fulfilled, the client shall be liable for paying the tax, interest and fines due in respect of that condition”.
The purpose of this reference is to inform the client who does not submit periodic VAT declarations and who has not informed their contractor of the capacity of the consequences of their personal liability for the payment of the tax, interest and fines due.
VAT in the Digital Age
Following a small delay, on 7 December 2022, we expect three VAT directive proposals from the European Commission on VAT in the Digital Age: digital reporting obligations and e-invoicing for VAT purposes, the extension of one-stop shopping arrangements, and the VAT treatment of the flat-rate economy.
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