Extension of application of reduced VAT rate in fitness centres - The VAT authorities concede

The Court ruled that if the provision of individual and/or group guidance is ancillary to the right to use sports facilities, these ancillary operations are also subject to the reduced rate.

The Court indicates that this seems to be the case for general formulas offering both access to the sports facility and group lessons, without making a distinction based on the type of accommodation used or any participation in group lessons.

 

Position of the VAT authorities

Based on a press release, the VAT authorities are now willing to refund the difference in VAT paid at the standard rate for private and group lessons. The VAT taxpayers concerned are now entitled to a refund of the 15% difference in VAT paid.

Since the change also applies to the past, VAT taxpayers are entitled to a refund of VAT collected in the period up to 2019.

 

How can we help you?

If you are a VAT taxpayer filing quarterly returns, we can apply for a VAT refund:

  • via a letter to be sent to the competent administration no later than 31 December 2022;
  • through an amended VAT return for the third quarter, to be filed by 31 December 2022. This amended VAT return replaces the return already filed for the third quarter of 2022.

If you are a taxpayer who files monthly returns, we can request a refund

  • via a letter to be sent to the competent administration no later than 31 December 2022.
  • via an amended VAT return for November 2022, to be filed by 31 December 2022. This amended VAT return replaces the return already filed for November 2022.

 

Contact

Our VAT experts can assist you in assessing whether the formulas you use may be entitled to a reduced rate and whether you are eligible to obtain a refund of excess VAT. Please reach out by email to btw-tva@bdo.be for the attention of one of the members of the VAT team: