Minister Van Overtveldt proposes simplified VAT regulations

Proposed by Minister of Finance Johan Van Overtveldt (N-VA), the government has approved a thorough change to VAT. The regulations implemented by the previous government were often questioned by businesses, accountancy firms, etc. due to their enormous complexity. “The new VAT regulations mean much simpler administration,” says Van Overtveldt.

For transactions between businesses, the invoice and the advance payment invoice determine when the VAT must be paid to the State. Adapting the accounting software is therefore no longer necessary. The final date to transfer that amount is the 15th of the month following the delivery or provision of service: it is no coincidence that this is also the last date for a company to issue its bill.

No more payments in advance
A solution has been created for transactions between businesses and the authorities. Currently, the business must transfer the VAT owed to the governmental body at the time of delivery or service provision, regardless of whether or not the invoice has been paid. Given the fact that the authorities often pay late, the business must finance this itself, with all the consequences thereof. Starting next year, they will only have to transfer that amount when the governmental body has actually paid.