belgium VAT changes

Belgium introduces new statutes of limitations, interest rates and makes changes to the application of the reverse charge mechanism

January 31, 2023 in European VAT, International VAT, VAT

Belgium introduces new statutes of limitations, interest rates and makes changes to the application of the reverse charge mechanism

With effect of 1 January 2023, the Belgian government introduced a number of measures impacting VAT.

Firstly, the reverse charge mechanism will always apply when construction works are carried out on immovable property by a supplier established in Belgium, to a customer who has a Belgian VAT registration number and an obligation to submit VAT returns in the country.

This means that moving forward, the reverse charge in construction services will also apply when the customer if established outside Belgium irrespective of whether a fiscal representative is appointed by the business customer.

In addition to these changes, the statute of limitations has been extended in Belgium from 7 to 10 years in case of fraud, and from 1 to 4 years in the absence of submitting a VAT return. The requirement to keep records is also extended from 7 to 10 years.

Lastly, new interest rates apply to late VAT payments as of 1 January 2023.

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