- Companies using the real use VAT deduction method for mixed taxable persons in Belgium had to notify the VAT authorities by the end of June 2023. Now, they must also provide additional information to support this methodology.
- For those who already applied the method before 2023, they need to indicate this in form 604B by April 20, 2024 for quarterly VAT taxable persons, or by June 20, 2024 for monthly VAT taxable persons.
- For those who started using the real use method in 2023, they should indicate this in form 604A/B by April 20, 2024 for quarterly VAT taxable persons or by April 20, 2024 for monthly VAT taxable persons.
- Additionally, mixed VAT taxable persons using the general prorata method will also need to notify the Belgian VAT authorities by July 1, 2024.
- The VAT authorities will be scrutinizing the VAT deduction methodology of mixed taxable persons more closely and have a centralized database to facilitate audits.
- Holding companies using the real use method will be directly affected and should ensure that their VAT deduction method is applied correctly, updated annually, and defendable.
- It is important to assess whether any changes in activity, reorganization, or control have impacted the VAT deduction methodology.
Source PwC
