VAT on Advance Invoices


Further to a recent answer by the Minister of Finance, Mr. Koen Geens, to a parliamentary question raised by Miss Veerle Wouters, published on 24 of April 2013, the Minister has stated that its administration will soon be publishing the final rules on when Belgian VAT will fall due on, and how companies in Belgium should deal with, advance invoicing.

In order to avoid additional practical prob lems in issuing advance invoices and in order to safeguard government efforts to simplify official obligations in Belgium, a final version of an official tolerance will be issued for an advance invoice to qualify as a correct VAT invoice without a second document having to be issued at the time the VAT falls due.

In other words, when VAT is charged on an advance invoice before the taxable event or before payment is received, the supplier has the option to pay the VAT charged on the advanced invoice direct to the authorities  once the document is issued, at the time of the taxable event or once payment is received before the taxable event.

The recipient of the invoice will be able to deduct this VAT once:

  • the invoice or advance invoice is paid;
  • the taxable event takes place; or
  • the reverse charge has been applied in its VAT return, if applicable.

The old official decision E.T. 123.563 of 19.12.2012 allowing a temporarily tolerance will only apply for calendar year 2013.