Bill containing various VAT changes approvedBill containing various VAT changes approved VAT warehouse exemption Article 39quater of the Belgian VAT Code includes the exemption scheme for the operation of a VAT warehouse whereby RD No. 54 lists the goods that can benefit from this measure. However, the Constitutional Court ruled that this allowed a particularly broad authorisation for the King to lay down the essential elements of a tax in violation of the constitutional principle of legality. Article 39quater of the VAT Code is hereby redrafted. It is also used to add new goods to the list of allowed VAT warehouse goods, i.e.,: chemical products referred to under CN codes 3824 90 92, 3824 90 93 and 3824 90 96; undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol or higher falling within CN code 2207; biodiesel and mixtures thereof falling within CN code 3826 00. Reporting obligation for partial and mixed VAT taxable persons Since 2023, there is a reporting requirement for mixed VAT taxpayers, in particular VAT taxpayers who carry out transactions fully within the scope of VAT, but partially exempted on the basis of Article 44 of the VAT Code, who wish to exercise their right of input VAT deduction through the actual use method. This reporting obligation would be extended from 2024 to mixed taxable persons who use the general pro rata and to partial VAT taxable persons, in particular VAT taxable persons who carry out transactions outside the scope of VAT in addition to their VAT activities (whether exempt or not). Belgian VAT identification number The draft contains a change in the wording of VAT legislation on the allocation of a VAT identification number to non-taxable legal persons and fully exempt VAT taxable persons. In addition, the cases in which it is mandatory to communicate a VAT identification number and in which no VAT identification number may be communicated will also be further specified. Electronic interfaces For distance sales, the current regime already provides for certain situations that electronic interfaces are considered the primary debtor of VAT on the supplies they facilitate. Now, it also adds a system of joint and several liability when one is not in good faith or has committed an error or negligence for other situations. Special scheme for farmers The special scheme for farmers does not introduce any substantive changes, but transfers some provisions currently contained in a Royal Decree to the VAT Code. Special limitation period on VAT In order to align the notification on the application of the extended 10-year limitation period with the procedure indirect tax and align the Dutch and French-language versions, VAT administrations intending to apply the 10-year limitation period for the claim for payment based on indications of fraud will be required to give prior written notice of the suspicions of fraud against them during the relevant period. Furthermore, there is also an extended limitation period of 7 years when the administration receives probative information from legal proceedings that transactions taxable in Belgium were not declared, transactions were wrongly exempted or tax deductions were applied. In order not to make recovery dependent on the progress in the judicial file, it is stipulated that this limitation period starts after the end of the calendar year in which a court decision relating to a tax claim has become final. Change in VAT rates Finally, the bill also contains some amendments regarding: the reduced VAT rate of 6% for firms providing jobs to the unemployed; the reduced VAT rate of 6% for real estate operations for shelters; the reduced VAT rate of 6% for medicines for humans or animals; the reduced VAT rate of 6% for hair prostheses. Contact Do you have questions regarding these new regulations, or would you like a review of the impact of these new rules on your situation? Our VAT experts are at your disposal for advice or assistance with VAT formalities.