Mixed VAT taxpayers in 2024

Mixed taxable persons can determine their VAT deduction right via two methods. Either they perform the VAT deduction on the basis of the general pro rata method or they perform the VAT deduction on the basis of the actual use that is made of the goods and / or services received.

Previously, we already reported on the important changes in 2023 to the procedure for application of VAT deduction on the basis of the actual use method. In a nutshell: since 1 January 2023, the new procedure merely consists of a prior electronic notification to be submitted by mixed taxpayers in order to opt for the VAT deduction according to the actual use method. Furthermore, such taxpayers must also provide certain specific information via Intervat, allowing the VAT authorities to better monitor the correct application of the actual use method.

According to a law published on 1 December 2023, similar formalities will be introduced as from 1 January 2024 for mixed taxable persons applying the general pro rata method. Such taxpayers will then have to:

• Submit a prior notification through the online application “e-604” in order to opt for the VAT deduction according to the general pro rata method. Taxpayers already applying this method on 31 December 2023 will have to submit the notification before 1 July 2024.
• The VAT authorities will need to be informed on the provisional / final general pro rata percentage. This will have to be done on a yearly basis via Intervat, i.e. when filing the Q1 VAT return or one of the first three monthly VAT returns of the calendar year.

Finally, a similar obligation will be introduced for partial VAT taxpayers (i.e. taxpayers that also perform activities outside the scope of VAT) in the sense that they will also have to inform the VAT authorities on the special pro rata they use.