Belgium: Proposed change to VAT adjustment period for immovable business assets

Following the judgment of the Court of Justice of the European Union (CJEU) in case c-243/23 (September 12, 2024), a draft law has been introduced before Parliament that would provide new principles to determine the applicable value added tax (VAT) adjustment period for works related to immovable business assets in Belgium.

Background

The general VAT adjustment period for business assets is five years. However, for immovable business assets, this period is extended to 15 years for:

• Activities that lead or contribute to the construction of (parts of) buildings
• The acquisition of ownership of/rights to (parts of) buildings

For (parts of) buildings rented under the optional VAT regime of the VAT Code, the VAT adjustment period for these costs is extended to 25 years.

According to the current administrative VAT guidance, the performance of conversion or improvement works which cause (the part of) the building to become “new” again for VAT purposes are subject to the 15-year VAT adjustment period. If (the part of) the building does not qualify as “new” following the performance of the works, those costs fall within the scope of the general five-year period. Works solely related to the repair, maintenance, or cleaning of (a part of) a building are not subject to any VAT adjustment.

Proposed change

To determine whether immovable property works are subject to the five-year or 15-year VAT adjustment period, the new criterion related to (the part of) the building becoming “new” after completion of the works will no longer be relevant. Instead, the 15-year period will be applicable to “services that have characteristics comparable to those typically attributed to immovable business assets.” The same principle will also be applicable for the 25-year period in cases when the building is subject to an optional VAT lease.

Read a January 2026 report prepared by the KPMG member firm in Belgium