Two VAT relaxations with a direct impact for taxable persons

VAT chain reform: postponed until further notice

The long-awaited reform of the VAT payment chain, initially planned for early 2025, has been postponed again. The FPS Finance aims for a phased and well-prepared implementation, developed in close consultation with the business community.

What does this mean in practice?

• The new bank account number of the FPS Finance, on which VAT payers were supposed to make their payments, will not yet be activated.

• The existing bank account number remains valid, even after 1 October 2025.

• Other related measures, such as the new refund procedure and the VAT provision account, are also postponed until further notice.

This delay should give both companies and authorities more time to prepare for the digital and administrative transition.

VAT deduction based on actual use: less administration

Good news for mixed and partial VAT taxpayers: the FPS Finance has introduced a significant simplification of reporting obligations for those applying the VAT deduction based on actual use.

What changes?

As in 2024, mixed and partial taxpayers will have more time in 2025 to report the breakdown of input VAT (fully deductible, partially deductible, or non-deductible). The same new deadlines apply to the special pro rata as well:

• Second quarter of 2025: by 25 July 2025, or

• June 2025: by 22 July 2025.

Taxpayers may submit estimated figures at this stage. The final figures must then be provided no later than the periodic VAT return for:

• Third quarter of 2025: by 25 October 2025, or

• November 2025: by 22 December 2025.

Additional simplification for SMEs

For small enterprises, the rules are even more flexible:

• The estimated figures will be considered final, meaning SMEs no longer need to submit updated numbers in Q3 or November 2025.

• From 2026 onwards, the reporting obligation will be abolished entirely.

Larger companies, however, must still submit the final figures as usual.

Important: This simplification only applies to taxpayers using the actual use deduction method. Those applying the general pro rata system must continue following the traditional procedure for reporting “provisional” and “final” ratios.

Do you have questions about how to apply VAT deduction based on actual use, or need support preparing your periodic VAT returns? Our VAT experts are here to guide you through every step. Contact us today for personalised advice.