- Annual Submission Requirements: Partial and mixed taxable persons applying the actual use method must report, in their periodic VAT returns, the percentage breakdown of VAT charged on transactions related to fully deductible, non-deductible, and partially deductible sectors.
- Extended Deadlines for 2025: The deadlines for submitting this information have been postponed to align with the filing dates for the second quarter of 2025 (by July 25, 2025) or June 2025 (by July 22, 2025). Taxpayers may initially provide estimates, with final figures due by the third quarter of 2025 or November 2025.
- Changes in Reporting Obligations: While large companies must still submit final figures for 2025, SMEs are exempt from this requirement from 2026 onwards, allowing them to treat their estimates as final. However, the scope for partial taxpayers remains restricted, with obligations to report final figures still in effect for them.
Unofficial translation
VAT deduction according to actual use – Additional tolerance
Partial taxable persons and mixed taxable persons who apply the actual use must submit the following information annually in the periodic VAT return:
- the breakdown, as a percentage, of the VAT charged on the transactions:
- used exclusively for the business department(s) whose transactions give full right to deduct.
- which are used exclusively for the business department(s) whose transactions do not give rise to the right to deduct.
- which are used simultaneously for both types of business departments.
- the special ratio or several special ratios applicable to the operations used simultaneously for both types of business units and, in the case of the application of several special ratios, the overall result of the application of those special ratios.
However, those deadlines for 2025 were postponed to the deadline for filing the periodic VAT return on:
- the second quarter of 2025 (no later than 25 July 2025)
- or June 2025 (no later than July 22, 2025).
These figures require the allocation of each incoming invoice with VAT to one of those sectors. This year, VAT taxpayers can include this information in the return based on estimates.
In principle, they must provide the final figures at the latest with the periodic VAT return for:
- the third quarter of 2025 (at the latest on 25 October 2025)
- or November 2025 (by 22 December 2025 at the latest).
Because the current legal provisions on mixed taxpayers have a very broad scope, the scope will be limited in various ways in the coming years as a test of ministerial tolerance.
In 2025, the communication of the final figures will remain mandatory for large companies, as provided for in the message of 4 April 2025. From 2026 onwards, tolerance will no longer be applied.
Contrary to the message of 4 April 2025, SMEs do not have to communicate these final figures in the third quarter of 2025 or November 2025. The estimate is considered final. Moreover, from 2026 onwards, this obligation will no longer apply to SMEs.
For partial taxpayers, the scope of application will still remain severely restricted, as communicated in the news item of 23 May 2024. The intended taxpayers must communicate the final figures in the third quarter of 2025 or November 2025.
Source financien.belgium
