Value Added Tax
- As regards to VAT, the proposal of the Minister of Finance focuses on a major reform of VAT rates.
- Furthermore, another element of the reform is the adjustment of the tariff structure in the sense that the existing reduced VAT rates of 6% and 12% will be harmonized into a new reduced VAT rate of 9%.
- In order to stimulate the replacement of old houses with new and sustainable ones, the current temporary reduced VAT rate for demolition and reconstruction would become permanent – although the new reduced VAT rate of 9% would apply instead of the existing 6% VAT rate;
- Digital and automated solutions such as e-invoicing and e-reporting.
- The rules regarding the mandatory use of e-invoices will be introduced gradually, with a first phase entering into force as from the 1st of July 2024 for taxpayers established in Belgium whose turnover, excluding VAT, exceeded 9 million Euro during calendar year 2023. Mid-sized Belgian taxpayers will follow as from the 1st of January 2025 (e., turnover between 700.000 Euro and 9 million Euro during calendar year 2023 or turnover of more than 700.000 Euro during calendar year 2024) and the other taxpayers as from the 1st of July 2025. For taxpayers who are subject to the VAT exemption scheme for small businesses or to the special VAT regime for agricultural entrepreneurs, the entry into force is set at the 1st of January 2028.
Source: KPMG BE
