• VAT quarterly advances will soon belong to the past

VAT quarterly advances will soon belong to the past

Pascal Dauw, Partner |

23 February 2017

Currently taxpayers who quarterly file VAT returns must pay advances on the second and third month of each quarter. This advance payment is equal to 1/3rd of the amount of the VAT due as reflected in the last VAT return submitted.

To administratively simplify and to avoid pre-financing of the VAT, this requirement will be abolished from 1 April, 2017 (Royal Decree of 16.02.2017 amending the Royal Decrees No..1 & 24). As a consequence, taxpayers no longer need to pay VAT advances as from the second quarter of 2017.

December advance

Instead, like taxpayers filing monthly VAT returns, a December advance payment will be due. Quarterly declarants should henceforth on December 24 of each year pay an advance equal to the net amount of VAT due on transactions performed between 1 October  and 20 December of that year (or between 1 December and 20 December for monthly declarants). To determine the amount due, the taxpayer must draft an interim VAT return (for the period up to December 20). This return does not need to be filed, but must be available in case of a VAT audit.

Quarterly declarants can also opt to pay the VAT amount that proved from the last filed VAT return a second time as December advance. In this case, an interim VAT return is not necessary.

The December advance will be offset against the final VAT amount due reflected in the VAT return related to the fourth quarter (or December). Taxpayers who choose to determine the December advance based on an interim VAT return will have report the VAT due based on this interim VAT return in box 91 (if positive) of the VAT return related to the fourth quarter (or December).

Contact

For questions regarding this topic, please contact your usual BDO contact or send an e-mail to [email protected] to the attention of one of the members of the Competence Center VAT:

  • Erwin Boumans, 02/778.01.00
  • Brigitte Braeckmans, 03/230.58.40
  • Pascal Dauw, 09/210.54.10
  • Kaatje Bondewel, 02/778.01.00