Belgium: MOF clarifies a new procedure on VAT deduction effective as of January 1, 2023
The Ministry of Finance clarified the new procedure for deduction according to the “actual use” effective 1 January 2023. The procedure is applicable to a mixed taxable person. In which, an individual or a business is subject to tax on both their domestic and foreign income.
The clarification of the new procedure explains:
- the implementation of deduction in accordance with real allocation for the first time by using the e604 application to submit the e604a or e604b declaration
- that the notification needs to be sent out only once
- that the deduction regime is in place at least until December 31 of the third year following the implementation date of the announcement
- the methods for rejecting the notification
- the information related to the application of the right to deduct must be communicated to the agency
- the information regarding late notification or communication
Thus, submitting declarations must be:
- prior to the completion of the first reporting period of the current year, if you are already a mixed taxpayer
- prior to the first reporting period’s completion, after the beginning or adjustment of your activity, applicable if you become a cross-border taxable person by starting or changing your activity.
Furthermore, taxpayers who were already using the deduction regime according to their real allocation by 31 December 2022 had to notify the agency that they still intended to use it. The confirmation period runs from January through 30 June 2023.
Source: belgium.be
