Company bicycle
FPS Finance will publish a VAT circular on a flat-rate VAT deduction for mixed-use company bicycles. This will result in a practical solution for a flat-rate VAT deduction. At present, there is still a requirement for further proof of actual work-related use (including keeping a journey log). This will be a practical alternative that will avoid the need for a log (with a statement of work-related kilometres travelled) for bicycles.
VAT rates
FPS Finance will reintroduce a reduced 6% VAT rate for deliveries of homes constructed after the demolition of an existing building (sale after demolition and reconstruction). The social conditions previously linked to this measure under the temporary rules will be kept. The floor space criterion for deliveries will be reduced from 200m² to 175m².
Some changes in VAT rates will be introduced:
- A temporary reduction of the VAT rate for the delivery and installation of heat pumps from 21% to 6% for the next 5 years.
- An increase in the VAT rate for the delivery and installation of a combustion boiler using fossil fuels (gas, oil, etc.) from 6% to 21% in the context of a renovation (for homes more than 10 years old)
- An increase in the VAT rate on coal from 12% to 21%.
Extension of the registered cash till scheme
A registered cash till scheme will be introduced throughout the hospitality industry to ensure a level playing field, except for businesses with a total turnover of less than EUR 25,000.
Retention of VAT deduction for donating goods
Donated goods will be considered to have lost all economic value. This will enable businesses to retain the VAT deduction that previously applied to such goods.
Updating of VAT penalty policy
The VAT penalty policy will be updated. Among other things, any mitigating circumstance will be taken into account when determining the amount of the proportional fine, provided the Belgian Treasury has not incurred any financial loss as a result of the infringement committed.
VAT receipt lottery to combat VAT fraud
The widespread international model of a VAT receipt lottery will be examined. Belgian private individuals will be encouraged to send in receipts, with the system being used to cut down on tax fraud.
Scrapping of various VAT registers
The scrapping of the daily receipts book and various VAT registers is being considered, given the existing oversight options and the information available to the VAT authorities.
The scrapping of the submission of a nil customer listing is being considered in view of the introduction of e-reporting (from 2028), at which point the government will in any case have the necessary information at its disposal.
