News article

New VAT chain: extension of transitional regime and yet again additional tolerances

With effect from 1 January 2025, the new VAT chain will come into force in stages. The tax authorities have published a circular in this regard (2025/C/6 dated 27.01.2025).

In the Explanatory Memorandum to the new VAT chain, it was already clarified that quarterly declarers would be given an extra 5 days to file their VAT returns and pay the VAT due. On the other hand, all other tolerances on filing and payment would be abolished.

Summer scheme and extension of filing and payment to first working day

In a notice dated 23 December 2024, the tax authority already referred to the new VAT calendar on its website showing that under the new VAT chain, both the summer scheme and the extension to the next working day if the deadline for submission and payment for periodic VAT returns is a Saturday, a Sunday or a legal holiday will be abolished. But the tax authorities add that as a transitional arrangement, these tolerances will be retained until 30 April 2025.

According to the circular just published, this transitional arrangement will now be extended until 30 September 2025. And for monthly declarers, this extension will also remain applicable after 30 September 2025, but not for quarterly declarers.

The summer scheme will also be retained in 2025. On the instructions of the minister, the administration will thoroughly investigate in what form the holiday scheme can continue to exist after 2025.

However, the deadline for submitting the VAT return to end the procedure of a substitute VAT return will be extended to the next working day if it normally expires on a Saturday, a Sunday or a public holiday. And this will also be the case for the response time to a request for information.

New account number

The current account number BE22 6792 0030 0047 of ‘VAT Receipts’ Brussels will also have to continue to be used until 30 September 2025 for the payment of the VAT due, as evidenced by the submitted declaration, with the structured communication as stated on the confirmation of receipt of the submitted declaration (the new account number will only be usable from 1 October 2025). As from 1 October 2025, payments can no longer be validly made on that account and any payment of VAT due as evidenced by a periodic VAT declaration (+ any fines and late payment interest), insofar as not yet included in a collection and recovery register declared enforceable, must be made to the account BE 41 6792 0036 4210 of the ‘Collection Centre – Central VAT Account’ with the communication determined by the FPS Finance on the basis of the company number (to be requested via the website of the FPS Finance).

VAT commission account

The commission account VAT will be introduced gradually. The tax authorities will publish further information on this on their website.

Fines

A transitional arrangement will also apply to the imposition of fines. For VAT returns to be filed by 30 September 2025 at the latest, no penalty will be imposed for late filing by the 10th of the 2nd month following the return period (e.g. first quarter 2025 return to be filed by Friday 25 April 2025, filed on Thursday 8 May 2025).

Late filing of VAT returns that are not due until 1 October 2025 will be penalised with a fine, however. But this will be waived on filing a petition if it is the first good faith breach. The ‘fine policy’ instruction will be updated accordingly.

The above two paragraphs only apply to fines for late filing, not for late payment. For late payment, the statutory penalty will be imposed but taking into account payments received by the 10th day of the second month following the specified period. Please note that this tolerance only applies to ‘compliant’ VAT taxpayers (those who fulfil their VAT obligations normally) and is therefore not an exemption for systematic late payment within this period.

The fine for failure to file a VAT return (filing with more than five months’ delay or VAT return not filed at the time a provisional substitute return becomes final) applicable since 1 January 2025 increases depending on whether it is the first (€500), second (€1,250), third (€2,500) or subsequent (€5,000) offence. According to Article 3(1) RD 44, the same offences committed during the four-year period preceding the time when the offence is committed will be taken into account for this purpose. For the calculation of that reference period, only offences committed from 1 January 2025 onwards will be taken into account.