Input VAT Deduction: General Pro-rata or Actual Use Tolerances in 2024

Mixed taxable persons have to limit their input VAT deduction according to either the general pro-rata rule, or the direct attribution method.
In both cases, mandatory additional information must be provided, since 1 January 2024, in the periodical VAT return of the first quarter or the month of March (due by 20 April) of the running calendar year.

If the direct attribution method was already applied on 31 December 2022, the taxable person had to provide this information by 20
April 2024 (if quarterly VAT payer) or 20 June 20 2024 (if monthly VAT tax payer). The same VAT obligations have also been imposed on partial VAT taxpayers since 1 January 2024.

Tolerances 2024

As the information to be provided- in case the direct attribution method is applied- is quite complex to generate, the Belgian VAT authorities have now allowed an extension of this deadline.

These deadlines are now, in principle, postponed to the submission date of the declaration for the second quarter of 2024 (for quarterly filers) or to the submission date of the declaration for the month of June 2024 (for monthly filers), which is in principle due by 20 July 2024. However, due to the summer schedule, this filing deadline has been extended to 9 August 2024.

Information to be provided

Taxable persons applying the direct attribution method must provide the following information

The percentage of input VAT related to transactions, exclusively allocated to business sectors eligible for full VAT deduction;
The percentage of input VAT related to transactions exclusively allocated to the operating sector(s) where operations do not entitle VAT deduction;
The percentage of input VAT related to transactions simultaneously allocated to both types of operating sectors.

In addition, the applied special pro rata must be communicated.
In order to determine these percentages, each purchase invoice with VAT must be categorized to one of these sectors.

For 2024, the taxpayers concerned can initially provide estimated figures in this first VAT return. The final figures (relating to 2023) must be reported in the VAT declarations for: