Belgian annual VAT prepayments abolished starting 2021

Permanent abolishment of the annual VAT prepayments in Belgium following the amendment of VAT Law in the context Covid-19 relief measures.

Belgian annual VAT prepayments, or advanced payments are permanently abolished. Last year these advanced payments were not due as per the Covid-19 relief measures taken in 2020, in order to facilitate taxpayers being compliant in that difficult times. Now, the decision is permanent to delete the annual prepayment in Belgium starting on 2021.

In the past, businesses submitting their VAT returns monthly or quarterly had to make an advance payment once a year during the month of December. This prepayment was normally due by 24 December and is calculated according to one of the following methods:

  • Either based on the las period VAT liability.
  • Or based on the actual VAT liability for the first days of the reporting period.

VAT prepayment obligation was not very convenient for taxpayers, that had to advance an amount of the VAT due for the period to the tax authorities, meaning a cash flow disadvantage. This is good news for taxpayers that now do no longer need to make this annual VAT prepayment in Belgium.

Taxpayers are no longer subject to annual VAT prepayment in Belgium.

The Decision dated 29.03.2021 (arrêté royal) supressing the Decision number 1, 4, 24 and 41 related to VAT, includes the abolishment of annual prepayment, as well as other Covid-19 relief measures that now are made permanent.

In consequence, also the penalty and late payment interests connected to the annual prepayment compliance are cancelled.

Do you need help?

Contact our compliance team to get further help on your Belgian VAT returns. Marosa Belgium, our dedicated local entity, will help your business locally and act as fiscal representative if and when required.


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