VAT – Reporting Requirements for mixed VAT-taxpayers

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Stijn Vanoppen
15 Mar 2024
Subject Financial Services Alerts
Categories Tax
Jurisdictions Belgium

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    Significant changes/obligations have been introduced for mixed/partial VAT taxpayers regarding reporting of their VAT-deduction methods. The objectives pursued by these new obligations are clear: facilitating, via “automated” yearly communication of structured data, the control of the correct application by mixed (or partial) taxpayers of their deduction rights.

    In that respect, below is a short summary of communication that should occur (very) soon for mixed VAT-taxpayers.
     

    Real-use method

    Mixed VAT-taxpayers making use of the real-use method are required to communicate, electronically via the INTERVAT application, at the latest in the (last) VAT return related to the first trimester, i.e. for this year, by 22 April 2024:

    • The final general deduction prorate of the previous year, if applicable (note: as such, the exact scope of this obligation is not fully clear and leaves room for discussion).
    • The proportion, expressed in percentages, and taking into account the criteria applied by the mixed taxpayer on VAT-incurred in relation to (1) incoming operations that are exclusively linked to activities allowing deduction (100%), (2) incoming operations that are exclusively linked to activities not allowing deduction (0%) and (3) incoming operations that are linked to both types of activities (special ratios).   
    • The special ratio(s) applied and, if many, the global result of those special ratios on VAT associated to the incoming operations (linked to (3) above).
       

    General prorata method

    Mixed VAT-taxpayers already making use of the general prorate method are required to communicate, electronically via the INTERVAT application, their preliminary and final general pro-rata to the tax administration, at the latest in the (last) VAT return related to the first trimester, i.e. for this year, by 22 April 2024 at the latest.
     

    Key takeaways

    • Recent developments have increased the level of reporting requirements in relation to the VAT-deduction methods, in view of reinforcing controls capacity of the tax authorities.
    • As part of these requirements, mixed VAT-taxpayers should provide structured data, via the INTERVAT application, for (in principle) the 22 April 2024 at the latest.
    • The level of data to be produced in that respect is, without surprise, more granular in case of real-use method.
    • Given the objectives pursued and the fact that the authorities announced to perform more audits in that field, this upcoming communication certainly requires proper attention.