Extension of investigation, assessment and retention periods

The draft law on various tax and financial provisions contains substantial changes to the investigation, assessment and retention periods in direct tax and VAT procedures. This measure was first announced by Minister of Finance Vincent Van Peteghem – as part of the second action plan against tax and social fraud. The preliminary draft proposal was approved by the Council of Ministers on 15 July 2022 and subsequently filed with the State Council for review.

The VAT statutes of limitation are amended as follows:

• the three-year period is extended to four years for late or non-filing of the tax return;
• a ten-year period will equally apply for fraud in relation to VAT matters.

The provisions are planned to enter into force as from assessment year 2023 (direct taxes) or VAT becoming due as of 1 January 2023 and only for the future.

Other measures

• harmonisation of the interest regime in the VAT Code and Code of Miscellaneous Duties and Taxes with the interest regime for direct taxes.

Source PwC

 

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