Belgium – VAT Compliance Reform: VAT Chain, Reporting and Refund from 2026

Background

It has been a long journey since the first draft bill to modernize the Belgian VAT chain was introduced in the Chamber of Representatives. It was back in February 2023. The bill also proposed substantial changes to VAT compliance and the VAT refund process. 

The bill announced relevant changes to the financial processes for the payment and refund of VAT for Belgium taxable persons. Given the broad scope of changes and the significant impact the bill will have on taxable persons, service providers, and tax administrations, the law’s effective date was postponed several times. 

One part of the law came into effect on January 1, 2025, while other parts have been postponed until 2026. 

Framework of changes 

First round 

As shared earlier, the adopted law will gradually come into force. One part of the measures came into force on January 1, 2025. 

Some of the measures that came into force on January 1, 2025, are listed below.

Submission of VAT returns

The filing deadline for quarterly returns has been extended, giving accountable taxable persons more time to file. The filing deadline is extended to the 25th day of the month following the reporting period. The filing deadline for monthly returns remained the same. 

Payment of VAT returns under the adopted rules follows the same extended period for quarterly returns, while monthly returns remain unchanged. 

VAT Provision Account

From May 1, 2026, the VAT Provision Account will replace the currently used VAT account. This date marks almost full completion of the VAT chain modernization plan that started more than three years ago. 

Notes that taxable persons should take into account for periodic VAT returns( before the new rules come into force) are the following: 

• In the case that all pending VAT declarations are submitted by April 30, 2026, any credit left on the currently used VAT account will be transferred to the VAT provision account. 
• If the taxable person hasn’t submitted all mandatory VAT returns by this date, the accountable person will be given additional time to file these returns. 
• The new account number for paying outstanding tax or claiming a tax refund will change on May 1, 2026, to BE41 6792 0036 4210.

Impact 

The final round of the VAT modernization project in Belgium’s VAT law, in terms of VAT compliance, is approaching, so responsible taxable persons and accounting and bookkeeping service providers should finalize their migration to the new operational requirements. 

The modernization of the VAT compliance system, which unquestionably covers VAT filing and payment procedures, will very soon move to an entirely new system. New deadlines for submission and payment of VAT returns will come into effect; new procedures for claiming VAT refunds will be introduced; a new type of VAT account will be used; a new framework for VAT penalties is already in place, and many more changes are already in force. 

By May 1, 2026, almost all changes with their intricacies shall come into effect, and VAT-registered businesses should, if they haven’t already done so, align their internal accounting, bookkeeping, and compliance systems with the new rules. 

If your business isn’t fully aligned with the new VAT compliance requirements, there is still time to migrate to the new operational regime to avoid setbacks. Late filing, late payment, or tax credit refunds under the new deadlines could cause unnecessary cash flow delays and potential penalties. Act now if you haven’t already, and be fully compliant from day one. 

How to stay compliant

The Belgium VAT regime for domestic and non-resident businesses could be quite complex. 

We have successfully assisted many businesses in registering for VAT in Belgium, whether they exceed the threshold or identify a significant economic presence in the country. In addition to successfully managing your registration, we offer full VAT compliance services in Belgium. Such as: 

• Assistance with Tax Reporting(preparation of returns, filing, and remittance)
• Tax Advisory and Ongoing Tax Management
• Correspondence with Tax Authorities 

Frequently Asked Questions