• VAT deduction according to
    actual use method - Submission
    of notification now possible

VAT deduction according to actual use method - Submission of notification now possible

25 January 2023

As mentioned in the previously published article 'Mixed VAT liability and actual use method: new rules from 1 January 2023', new rules apply to mixed VAT taxpayers who should opt for input VAT deduction under the actual use method.

Clarifying (submission) procedure  

On 19 January 2023, the VAT authorities published a further clarification on the new prior electronic notification procedure. From now on, the notification can be submitted via the 'application e604' on the MyMinfin platform.   

If a VAT taxpayer already applied the actual use method on 31 December 2022, it has until 1 July 2023 at the latest to complete the 'Actual use' section of Form E-604 B (see below).  

 

 

If the taxpayer wishes to opt for the input VAT deduction under the actual use method only from 2023 onwards, the section 'Regime' should be completed instead of 'Actual use'. Note: if an activity commences, form E-604 A should be used and if an activity changes, Form E-604 B should be used.  

 

 

Tolerance in 2023 with respect to Intervat 

To substantiate an application for the actual use method, certain information on the exercise of the right of input VAT deduction should be communicated annually.  

The mandatory disclosure is made through Intervat when submitting the periodic VAT return for the first quarter (by 20 April) or one of the first three months.  

The VAT authorities now communicated a tolerance policy for 2023. That is, the data will only have to be communicated through Intervat for the first time in the periodic VAT return on: 

  • the first quarter of 2024 (to be submitted no later than 20 April 2024) or; 
  • one of the first three months of 2024 (to be submitted no later than 20 February, 20 March or 20 April 2024. 

The above tolerance also applies if the taxpayer becomes a mixed taxpayer in 2023 due to the start or change of his/her activity.  

If the right to input VAT deduction according to actual use has already been applied on 31 December 2022, the necessary information must be provided through Intervat in the periodic VAT return on: 

  • the first quarter of 2024 (to be submitted no later than 20 April 2024); or 
  • the month of May (to be submitted no later than 20 June 2024). 

 

Contact 

Do you have any questions on these new measures? Our VAT experts are available for further advice or assistance. Please email [email protected] for the attention of one of the members of the VAT team: