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Mixed taxable persons were already required to inform the tax authorities in 2023 about their choice to determine the right of input VAT deduction according to the actual use method. In addition, these taxable persons should provide additional detailed information in the first VAT return of 2024 (no later than 20 April 2024).
Note that the application of the general pro rata method must be notified by 1 July 2024 at the latest.
Information to provide when applying the actual use method
From now on, the following additional information must be provided in the first VAT return of each calendar year:
- the final general pro rata (in %) of the previous calendar year;
- a breakdown (in %) of the VAT charged on the costs that:
- are used exclusively for the economic activity with a right of input VAT deduction (full right of input VAT deduction);
- are used exclusively for the economic activity without a right of input VAT deduction (no right of input VAT deduction);
- are used for both types of economic activity.
(a) special pro rata(s) for the goods and services which are used both for the economic activity with a right of input VAT deduction and the economic activity without a right of input VAT deduction.
Deadline(s)
Taxable persons filing monthly VAT returns must provide this information in one of the first three monthly VAT returns (by 20 February, 20 March or 20 April at the latest).
Taxable persons filing quarterly VAT returns must provide this information in the Q1 VAT return (by 20 April at the latest).
Sanctions
The taxable persons who fail to meet this notification obligation and/ or to provide this additional information via the periodic VAT return, can only apply the actual use method from the 1st of January of the following calendar year, provided a new notification is submitted in due time.
Recommendations
With the introduction of these measures (mandatory electronic notification of the used method for the determination of the right of input VAT deduction and an annual update of certain core data), as well as the existing obligation to include exempt transactions without the right of input VAT deduction in box 00 of the VAT return, the tax authorities will/ can detect any anomalies much faster. Therefore, thorough preparation of the data to be provided is absolutely necessary. It is also an excellent opportunity to assess whether the method used for the determination of the right of input VAT deduction is still relevant or needs adjustments.
The VAT team of RSM Belgium ([email protected]) is happy to assist you with any questions regarding this matter.
