New Circular published regarding the modernization of the VAT Chain

• Indefinite Extension: The planned end date for the transition period (originally September 30, 2025) is postponed until further notice. This is to give professionals (such as accountants and tax advisors) sufficient time to adapt to the new VAT chain system and to allow for thorough technical and functional testing.
• Payment Modalities: Due to the indefinite extension of the transition period, the payment terms that were initially applicable until September 30, 2025, will continue to apply. This means that taxpayers should continue to use account number BE22 6792 0030 0047 for payment of the VAT due and should use the structured communication provided on the receipt of the submitted VAT return.  
• Scope of Refund Requests: The transitional measure allowing for the refund of all accumulated VAT credits (including advance payments and unallocated payments) via the VAT return will also remain in effect after September 30, 2025.
• Extension of Other Transitional Measures: The following administrative tolerances will continue to apply after September 30, 2025:
  • The submission and payment date for monthly and quarterly filers will be extended to the next working day if the 20th (monthly returns) or 25th (quarterly returns) falls on a weekend or public holiday. This tolerance will become permanent for monthly filers after the end of the transition period, but not for quarterly ones.
  • No penalties for late submission will be imposed if the periodic VAT return is submitted by the 10th day of the second month following the return period. This tolerance will continue to apply until further notice (i.e., also for returns with a statutory submission deadline after September 30, 2025).
• End of the Transition Period: The end of the transition period and the termination of the measures discussed in this circular will be announced on the website of the FOD Financiën.

If you have any questions on the VAT chain reform, or if you would like to know how this will impact you, feel free to reach out to us.

This article serves as a follow-up to our previous articles: VAT chain reform - KPMG Belgium and Belgian VAT chain reform as from 2025.