Further postponement of VAT reform
October 2025 - SMEs that were preparing for a new VAT refund procedure can put their plans on hold for the time being. The reform, which was due to come into force on 1 October 2025, has been postponed. The tax authorities have not yet announced a new date.
In consultation with the ITAA, the Belgian professional association of accountants and tax advisers, the FPS Finance has decided to postpone the introduction of the 'VAT chain' once again. According to the tax authorities, this is not a simple postponement but a strategic choice to ensure a smooth transition.
What was going to change?
Currently, as a company entitled to a VAT refund – because it deducts more VAT than it owes – you can do two things:
leave the balance in your current account, or
request an effective refund
Are you opting for a refund? If so, you will recover not only the credit from the current return, but also all the credits accumulated in the past in one go. This system would be changed: only the balance of the return concerned would still be refunded immediately. There would be a new provision account for accumulated amounts, replacing the current account.
The commission account is a sensitive issue. It only shows advances paid, deposits made and unclaimed balances, but does not show any VAT liabilities. This would require you, as a business owner, to consult several tools to find out your actual VAT position, whereas today you can do so at a glance. This is why the reform will not be implemented for the time being. Therefore, the new account number that has already been communicated may not yet be used.
Other reforms remain in place
Important: this postponement only concerns the VAT refund system. The other reforms in force since 1 January 2025 remain unchanged. For SMEs, these issues are particularly important:
Shorter deadlines for quarterly filers: quarterly filers now have until the 25th of the month to submit their return and payment (compared to the 20th previously). For monthly filers, the 20th remains the deadline. Increased fines for late returns.
No more corrective returns: errors – such as a forgotten invoice – can no longer be rectified by a separate correction during the same year. They should be dealt with in the next return.
The tax authorities will take over in the event of a delay: if you have not filed a return three months after the deadline, you will be subject to a tax assessment, which calculates the amount based on the highest VAT balance of the previous year, with a minimum of £2,100.
Shorter response times: requests for information must be processed within one month. In audits relating to VAT refunds, this period is reduced to 10 days.
What does this mean for your SME?
For the time being, nothing will change in the way VAT credits are refunded. Your trusted current account remains the central tool. However, it is important to remain vigilant: the reform has been postponed, not cancelled. Once the tax authorities have announced a new date, measures may be taken again.
