Major VAT Amendments Adopted: E‑Invoicing, Capital Goods & Refund Reform

Belgium has adopted a new set of legislative changes relating to Value Added Tax (VAT), aimed at modernising the VAT chain, improving compliance, aligning with EU requirements, and updating several special regimes. These measures—approved in second reading by the Finance Committee—span electronic invoicing, revision periods, refund procedures, special regimes for small enterprises and agricultural operators, and technical adjustments across the VAT Code (Wetboek van de Belasting over de Toegevoegde Waarde / Code de la TVA).

This article provides an integrated overview of the key VAT reforms.

1. Mandatory Structured Electronic Invoicing (E‑Invoicing)

(Articles 3–6; amendments to VAT Code art. 1bis, 53 §2bis, 53quater, and related legislation)

Belgium accelerates its transition toward full e‑invoicing in B2B transactions, building on EU Directive 2014/55/EU.

Key changes

• Updated legal definitions: The VAT Code now explicitly refers to Directive 2014/55/EU and the European standard for e‑invoicing.
• Technical flexibility:
  The law replaces detailed references to EN 16931‑1 and CEN/TS 16931‑2 with a broader reference to the EU standard and authorised syntaxes under Directive 2014/55/EU.
• Exception for technical impossibility:
  A supplier required to issue structured e‑invoices is exempted when the recipient is technically unable to receive them—yet must still issue a compliant invoice under general rules.
• Clarification for cross‑border establishments:
  E‑invoicing obligations do not apply to supplies in Belgium made exclusively for a foreign establishment of a taxable person (unless the taxable person is also established in Belgium).
• Deletion of certain transitional clauses in the 2024 e‑invoicing implementation law.

Impact

Belgium moves closer to a full CTC‑ready (continuous transaction control) environment, though practical issues—especially for SMEs—remain a subject of debate in Parliament.

2. Revision Rules for Capital Goods (“Investeringgoederen”) and Comparable Services

(Articles 7–10; changes to VAT Code art. 48 and Royal Decree No. 3)

This is one of the most technically important reforms.

General rules updated

• Immovable capital goods
  → Revision period remains 15 years (annual correction of 1/15).
• Movable capital goods and services with similar characteristics
  → Still 5 years, unless reclassified.

Major extension: Long‑term revision for immovable leasing with VAT

For buildings (or parts thereof) that:

• qualify as capital goods, and
• are leased with VAT under the optional regime (art. 44 §3 2° d),

the revision period becomes 25 years, with annual adjustments of:

• 1/5 for certain qualifying movable components, or
• 1/25 for building-related VAT.

Royal Decree No. 3 updated

• The definition of capital goods is expanded to include services with durable economic use.
• Exclusions (packaging, small equipment, office supplies) remain.
• A new list of transactions triggering long-term revision is codified (acquisition, construction, real‑estate rights, major renovation with “economic lifespan equivalent to a new building”).

Impact

This aligns Belgian rules with EU case law (including the Drebers judgment), and will significantly affect:

• real‑estate developers,
• long‑term lessors opting for VAT,
• businesses performing major renovations.

3. New VAT Chain (“Nieuwe btw‑ketting”) and Administrative Modernisation

(Articles 11–14; changes to art. 53 §1ter, 76, 83bis, and 91 VAT Code)

Belgium introduces a more automated approach to VAT declarations and refunds.

Key components

Substitute VAT declaration (“vervangende aangifte”)

• Proposed substitute declarations are now sent by regular post and deemed notified on the third business day after dispatch.
• If a taxpayer fails to correct the proposal in time, the declaration becomes definitive.

VAT refund tightening

• Excess deductible VAT must be refunded within three months after the return period, provided all returns of the preceding six months were filed on time.
• Refunds may be withheld when:
  • there is an outstanding (even not fully liquified) tax debt,
  • serious indications exist of incorrect prior VAT returns,
  • requested information has not been provided.

Withholding = deemed conservatory garnishment

• The withholding of refunds is legally equated to “saisie‑arrêt conservatoire” (conservatory seizure), strengthening enforcement powers.

No late‑payment interest owed

in several situations where refunds are delayed due to:

• verification issues,
• missing data,
• justified administrative withholding.

4. Small Enterprise VAT Exemption Regime (Vrijstellingsregeling)

(Articles 15–17; changes to art. 56bis, 56ter, and 56undecies)

Belgium further aligns its SME regime with EU Directive 2020/285 (new EU thresholds from 2025).

Main modifications

• Explicit prohibition of input VAT deduction for taxable persons under the exemption regime.
• Pro‑rata reduction of the turnover threshold for businesses starting mid‑year.
• Mandatory prior notification for SMEs opting into the exemption.
• Cross‑references adjusted following renumbering.

5. Special VAT Regime for Agricultural Operators

(Article 18; changes to art. 57 VAT Code)

Modernisation of the outdated agricultural flat‑rate scheme.

Key changes

• Farmers under the special regime are exempted from invoicing, declaration and payment obligations, except for intra‑EU transactions and certain compulsory invoicing cases.
• Farmers may perform additional activities under the small enterprise exemption without losing access to the agricultural regime.
• The regime no longer applies if the agricultural activity is carried out through a legal entity not recognised as an agricultural enterprise.
• Loss of eligibility triggers full switching to the normal VAT system.

6. Technical Revisions and Clarifications

(Articles 19–21)

• Removal of obsolete wording (“horeca sector”) in articles related to reduced rates and exemptions.
• Correction of a linguistic inconsistency in Royal Decree No. 20 (VAT rate schedule).

7. Entry into Force

(Article 22)

The following enter into force on the date of publication in the Belgian Official Gazette:

• Articles 3–4 (e‑invoicing refinements)
• Chapter 3 (capital goods revision rules)
• Chapter 4 (new VAT chain)
• Article 16(1°)

Other provisions follow default entry‑into‑force rules.