Since 1 January 2023, a mixed VAT payer which applies the real use method to determine its right to deduct input VAT is required to notify the tax authorities by electronic means (via an E-604A or E-604B respectively). See also our earlier article: VAT deduction under the real use method
As from 1 January 2024 this notification obligation is extended to mixed VAT payers which determine their right to deduct input VAT on the basis of a general pro rata .
On top of this mandatory notification, mixed and partial VAT taxable persons are obliged to provide information on how they calculate their right to deduct input VAT.
With the recent postponement of some of these deadlines (see link), we have summarised the main mandatory filing dates for 2024.
What are the (revised) deadlines for 2024?
1.Mandatory electronic notification
- A mixed VAT taxable person already applying a general pro rata on 31 December 2023 should submit the notification by 30 June 2024.
- A mixed VAT taxable person already applying the real use method on 31 December 2022, should have submitted its notification no later than 30 June 2023. If you have not yet made this notification, we recommend that you still do so as soon as possible and also contact your competent VAT office.
Please note that specific deadlines apply if your taxable status or deduction method change along the way.
The electronic notification for partial VAT payers is not an obligation (yet).
2.Communication of specific data
2.1 A mixed VAT taxable person using the general pro-rata
Based on the official communication (cfr. supra), we assume that the deadline is also postponed for mixed VAT payers with a pro-rata :
- The definitive pro-rata percentage over 2023 should be communicated at the latest via the VAT return of the second quarter or in the VAT return for the month of June when the VAT taxpayer files monthly returns (to be filed by 20 July 2024).
- The tolerance applied during the summer holidays even extends this deadline to 9 August 2024.
2.2 A mixed VAT taxable person using the real use method
- The communication of the data must be processed by all mixed VAT taxpayers at the latest via the VAT return of the second quarter or in the VAT return for the month of June when the VAT taxpayer files monthly returns (to be filed by 20 July 2024).
- The tolerance applied during the summer holidays even extends this deadline to 9 August 2024.
- In addition, this year estimates may be submitted whereby the definitive figures should be submitted at the latest in the periodic VAT return for :
- the third quarter of 2024 (no later than 21 October 2024) or
- November 2024 (no later than 20 December 2024).
2.3 Partial VAT taxable persons using the real use method
- The obligation to communicate the special pro rata(s) to the tax authorities has also been extended to partial VAT taxpayers similar as for mixed VAT taxpayers.
- Administrative guidelines regarding the concrete modalities are still pending.
Which data needs to be submitted?
1.Taxable person persons applying the real use method
The following information must be communicated:
- The final general pro rata, in percent, for the previous calendar year (when changing from general pro rata to real use);
- The breakdown, in percentage, of the VAT charged to the taxpayer that is:
- Used exclusively for the company department(s) whose transactions give full right of deduction;
- Used exclusively for the company department(s) whose transactions do not confer the right of deduction;
- Used for both company department(s)
- The special(s) pro rata figure(s), in percentage.
2.Taxable persons applying a general pro-rata
If the right of deduction is exercised according to the general pro rata, the definitive percentage relating to the previous year must be communicated in the VAT return.
What to do and what to expect ?
Taxable persons with a limited right to deduct input VAT should carefully review their method of VAT deduction and make sure that they comply with the new notification and data-sharing obligations.
The data that will be collected by the VAT authorities will enable them to perform more targeted audits. If the VAT authorities believe that the applied method leads to inequalities or anomalies they may retroactively reject the proposed deduction methodology which could lead to significant VAT assessments (including penalties and late payment interests).
Bert Gevers
Ninon Van Hecke
Shauna Guettaf
