We highlight the changes with the most impact. The practicalities of the changes still need to be communicated in a later stage by the VAT authorities.
The main conclusion to be drawn from the regulations is that it will be even more key to ensure timely filing and payment of VAT returns because this will be an absolute requirement to enable a taxpayer to receive refund of VAT credits but also to avoid increased penalties.
The first change aims to ensure accurate filing and payment of VAT returns.
When a VAT return is not submitted within three months, the VAT administration will propose a ‘replacement VAT return’. The VAT amount will be based on the highest VAT reported in the previous 12 months, with a minimum threshold of €2,100. Also a penalty of 15% will be imposed in such case.. However, a periodical VAT return can still be submitted within a period of one month from the date of elaboration of this proposal of substitute declaration.
Furthermore, as from 1 January, a fine will also be imposed for late payment of VAT, which, depending on the case, amounts to 5% of the VAT amount in case of late payment only, up to 10% or 15% in case of late submission of the VAT return and late payment of the VAT due.
Currently, the reimbursement of VAT credits is performed on a quarterly basis unless it concerns a start-up (first 24 months of business) or a monthly refund license provides the option for monthly reimbursement of VAT credits.
As from 1 January 2025, for taxpayers filing monthly VAT returns, the monthly reimbursement will become the standard rule without the need for prior approval. Refund requests submitted through periodical VAT returns will be limited to the credit amount indicated in the current VAT return, under the condition of the timely submission of VAT returns for the previous six months and a minimum amount of credit of €50. Reimbursement of the VAT credit will be made within a period of two months (instead of the current period of 3 months).
Under this new framework, the ‘current VAT account’ (as well as the ‘special account’) will be abolished and replaced by the ‘provisional account’. VAT credits from previous VAT returns will need to be reclaimed from the provisional account through a distinct process. In that respect, VAT taxpayers will be able to manage the amounts on the provisional account (so called self-management). Indeed, it will allow taxpayers to recover either a portion or the entirety of their credits and utilize this account to settle any outstanding administrative debts.
No practical details on how the provisional account will work are known at this stage except that it will be managed from the MyMinFin platform. The legislator did highlight that the procedures via the provisional account will become more ‘smooth’ for taxpayers to ask for refund or to allocate fundings to other tax debts.
The commission account would be introduced at least on 1 May 2025.
As part of the new VAT regulations, also a deadline to respond on requests for information from the authorities will implemented in line with the deadlines applicable in direct tax matters.
In principle taxpayers will have to respond in writing to any information request from the VAT administration within 30 days from the third working day following the request. This deadline can be extended for valid reasons, but it may also be reduced to 10 days in specific situations, such as in case of verification of the validity of a refund request via the VAT return.
We will keep you informed on any news about the practical details when they are published.
The account numbers for paying VAT will also change from 1 May 2025:
Starting 2026 businesses will also benefit from the option to pay their VAT debts via direct debit. This new payment method will simplify the process, making it easier for businesses to meet their VAT obligations efficiently. We will keep you informed about the practical arrangements regarding direct debit payments as these changes come into effect.
