Belgium: Year-end VAT review

Legislative changes that took effect during 2023

Legislative changes that took effect during 2023

The KPMG member firm in Belgium has prepared an overview of key value added tax (VAT) developments—not only focusing on the legislative changes that took effect during 2023, but also anticipating those that will become effective in 2024 and later years.

  • Extended limitation periods for VAT assessments and extended retention periods for VAT books and documents have been in effect since January 2023.
  • The reverse charge mechanism for immovable property works has been expanded to include foreign taxable customers with direct VAT registration in Belgium since January 2023.
  • The Court of Justice for the European Union (CJEU) held in June 2023 that a Belgian toll manufacturer does not constitute a VAT fixed establishment for its Swiss principal.
  • A circular letter clarifying VAT rules for the cross-border provision of company cars came into effect in September 2023.
  • A draft bill submitted in November 2023 outlines a new definitive reduced VAT rate regime for demolition and reconstruction, effective January 2024.
  • A law published in December 2023 holds electronic interfaces jointly liable for VAT payment, effective from January 2024.
  • The implementation of the “VAT chain” reform, which significantly changes the VAT compliance and VAT refund processes, has been postponed to January 2025.
  • Mandatory e-invoicing for taxable persons (B2B) will be introduced from January 2026.

Read the December 2023 report



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