Belgium’s 2025 VAT Chain Reforms: Key Updates

As of January 1, 2025, Belgium is implementing significant reforms to its VAT system, commonly referred to as the “VAT chain” reforms. These changes aim to modernize VAT processes, enhance compliance, and streamline interactions between taxpayers and the tax authorities. We asked our accountancy partner Catalyst to explain the key updates:

Belgium’s 2025 VAT Chain Reforms: Key Updates

As of January 1, 2025, Belgium is implementing significant reforms to its VAT system, commonly referred to as the “VAT chain” reforms. These changes aim to modernize VAT processes, enhance compliance, and streamline interactions between taxpayers and the tax authorities. We asked our accountancy partner Catalyst to explain the key updates:

1. Extended Filing Deadlines for Quarterly Filers

• New Deadline: Quarterly VAT returns and payments are now due by the 25th day of the month following the reporting period, extended from the previous 20th-day deadline. This change provides additional time for quarterly filers to prepare and submit their returns. Please note that late submissions will have stricter penalties, see point 5. 

2. Introduction of the VAT Provision Account

• Transition: The existing VAT current account will be replaced by a new VAT provision account. This account will manage VAT credits not immediately claimed and can be used to offset future VAT liabilities or be reclaimed through the MyMinfin portal.

3. New VAT Refund Procedures

• Monthly Refunds: Taxpayers filing monthly VAT returns will now be eligible for monthly refunds without prior approval, expediting the refund process. Refund requests submitted through periodic VAT returns will be limited to the credit amount indicated in the current VAT return, provided all VAT returns for the previous six months have been correctly filed and the credit amount is at least €50.

4. Revised Correction Procedures

• Error Rectification: Corrective or revised VAT returns can no longer be filed after the statutory filing deadline. Any corrections must be included in the next VAT return, necessitating careful review before submission.

5. Updated Penalties for Late Submission or Payment

• Stricter Penalties: Stricter penalties for late submissions and payments will also come into effect. The penalties include:
• 5% of the VAT due for late payment with a timely filed return.
• 10% of the VAT due for late submission of a return.
• 15% of the VAT due if the tax authorities issue a replacement return.
• Fixed fines for delays or non-submission range from €100 to €5,000, depending on the severity and recurrence of the offense.
• These increased penalties underscore the importance of timely and accurate reporting to avoid significant financial burdens.
• Freelancers and businesses are encouraged to review these changes and update their processes to ensure compliance with the revised regulations.

6. New Bank Account Numbers for VAT Payments

• Payment Details: New bank account numbers for VAT payments will be introduced starting May 1, 2025. Taxpayers must use the correct account for their transactions:
  • BE41 6792 0036 4210: For regular payments, including contributions to the provision account and overdue payments without a formal collection title.
  • BE42 6792 0000 0054: For payments linked to formal collection titles issued by the tax authorities.
• Taxpayers should update their records to ensure payments are made correctly and without delay. However payments still made on the old account numbers will be automatically redirected to the new, appropriate account number.

7. Implementation of ‘MyMinfin Account’

• Centralized Platform: The ‘MyMinfin Account’ project will provide taxpayers with a centralized platform to view all their credits and amounts payable to the tax authorities, enhancing transparency and ease of access.

These reforms are designed to simplify VAT compliance, improve transparency, and enhance tax collection efficiency. Taxpayers are advised to familiarize themselves with these changes and adjust their administrative processes accordingly to ensure seamless compliance with the new regulations.