In April 2024, the Belgian tax authorities provided a new deadline for the transmission of data by entities that apply a VAT recovery restriction and use the direct attribution method. The data is needed to allow the tax authorities to perform a benchmarking exercise.
Structured data for the 2023 financial year only needs be transmitted to the tax authorities by the later of the submission deadline for either the periodic VAT return for the second quarter of 2024, or the monthly return for June 2024 (for which the deadline would be 24 July at the latest).
In practice, businesses have found collating the necessary data quite difficult. Therefore, the Minister of Finance, Vincent Van Peteghem (“the minister”), has issued an additional tolerance period (Dutch | French) for 2024, following the previous tolerance policy published in April 2024. As a result of this postponement for the summer holiday period, an extended deadline of 9 August 2024 is now available for both monthly and quarterly filers.
Scope of disclosure requirements for partial VAT taxpayers
Due to the broad scope of the current legal provisions on partial taxpayers, this scope will be limited “in the coming years.”
“Large companies” will have to communicate their data, but small and medium-sized enterprises are not within scope. Specific entities such as the state, communities, regions, and provinces will not have to communicate any structured data for their non-VATable activities. As such, these entities only need to disclose the data or percentages for the activities on which they need to account for VAT or are VAT exempt (e.g., rental of immovable property, interest-bearing loans). Data relating to transactions exclusively outside the scope of VAT is also not required.
Deadlines
In-scope entities must comply with the reporting obligation by the following deadlines:
- 24 July 2024: Communication of the structured data for monthly filers who wish to receive the monthly refund following the periodic tax return for the month of June 2024.
- 9 August 2024: Communication of the structured data for monthly or quarterly filers applying the summer regime.
If the structured data communicated in 2024 for the 2023 financial year is based on estimates, the final figures will no longer need to be communicated before the third quarter of 2024 or November 2024.
Scope of reporting data
Reporting is not required for the following expenses on which VAT recovery is limited or excluded:
- Private use of business assets or other goods (such as a company car) provided by partial or mixed use taxpayers free of charge to a manager, director, or employee who may use these goods privately; and
- Reception costs (e.g., restaurant expenses).
The VAT charged on the purchase of any business assets and other goods must still be included in the allocation to the various business departments (full, partial, or no right of deduction). The taxable person has the option to pay the full VAT amount charged for reporting purposes or only the remaining VAT amount after application of the deduction limitation.
Unintentional errors
Additionally, the minister has requested that the tax authorities adopt a flexible approach for the 2024 financial year, in the event of any apparently unintentional errors by a taxpayer regarding the communication of the structured data.
Key contacts
Danny Stas
Danny is head of the tax advisory practice. He is a tax lawyer specialised in VAT, in particular with respect to real estate and financial transactions, as well as eco taxes and contributions. As partner in the firm, Danny focuses on VAT consulting for Belgian clients in the private and public sectors and the broad corporate market at national and international level. In the real estate industry, Danny focuses on VAT consulting for clients in the private (e.g. real estate developers, REITs, hospitals, senior housing, etc.) and public sectors and the broad corporate market at national and international level. Besides the specific VAT topics (e.g. reduced VAT rates, VAT exemptions), he has also good knowledge of alternative financing of real estate and transfer duties. Danny is a recommended lawyer in the Chambers Europe and Legal 500 directories.
Joaquim Heirman
Joaquim is a Director at Deloitte Legal, specialising in all VAT matters. He has over 10 years of experience in advisory services including guiding companies through administrative and court procedures. The majority of his clients are privately held companies and include real estate developers, law firms, health care suppliers and governmental institutions. Since 2009 he is a member of the Brussels bar. He published regularly on VAT matters and lectures at the KULeuven (University Leuven) on VAT aspects of real estate and is research assistant at the UGent (University of Ghent).
