Mixed and partial VAT payers: Extended submission deadline for VAT real use deduction method
Mixed VAT deduction, particularly prevalent among real estate, financial and holding entities, has seen significant changes since last year. For mixed and partial VAT payers employing the real-use deduction method, new specific annual information submission requirements have been introduced, necessitating submissions through the Intervat system. The required information to be submitted in 2024 includes: Full
VAT rate of 6% remains applicable for demolition-reconstruction residential projects for the letting market
In late 2023, the government significantly reduced the ability to apply the reduced VAT rate of 6% to demolition-reconstruction housing projects by limiting the benefit of the reduced rate to projects undertaken by individuals, except when leasing to a social housing agency. This had caused significant concern in the already financially pressured sector. As a
Holding companies – VAT deduction methodology – Reporting obligations
Introduction By the end of June 2023, companies applying the real use VAT deduction method (cost allocation) for mixed taxable persons had to notify it to the Belgian VAT authorities. Now these companies also have to communicate a whole set of information to back-up this VAT deduction methodology. For VAT taxable persons that already applied
Tax changes for the Belgian real estate market
This Newsflash highlights significant measures that influence the landscape of the Belgian real estate market. Indeed, on 9 October 2023, the Belgian government reached an agreement regarding the Federal Budget for 2024. The current budget round was an important one, as the economic climate is deteriorating and this has an impact on the budget of
Reduced VAT Rate for Home Demolition-Reconstruction Extended, Excludes Developers
The Belgian government has announced an extension of the reduced 6% VAT rate for the demolition and reconstruction of homes. However, this benefit will now exclusively apply to individual homeowners. Developers, who previously enjoyed this rate under certain conditions for the sale of apartments and homes, will revert to the standard VAT rate of 21%
VAT & Digital Services: European Commission on NFTs and Implications from OnlyFans EUCJ Case
VAT Treatment of NFTs: The European Commission has published Working Paper 1060, offering initial insights into the VAT treatment of non-fungible tokens (NFTs). The document aims to collect input from Member States to establish a consensus on NFTs’ VAT treatment. It emphasizes the complexity of NFTs, highlighting the following points: NFT VAT treatment necessitates case-by-case
VAT deduction based on direct attribution of costs: new rules as from 2023
In Belgium, the pro rata based on turnover is the general VAT deduction method for mixed VAT payers. Beside the prorata, the direct attribution method can also be applied. This method is widely used in the financial, real estate, not–for-profit and public sector. In practice, most corporate groups also use this method for their activities
VAT fixed establishment – Positive decision of the ECJ in the “Berlin Chemie” case
The issue with parent-subsidiary VAT fixed establishment The concept of VAT fixed establishment has recently been the source of litigation in several Member States. In those cases, tax authorities argue that a subsidiary is the VAT fixed establishment of its parent company. In Belgium, we have seen this growing trend whereby the Belgian VAT authorities
