by Dries Torreele
Further to the recent legislative amendment, as of 1 January 2019, under certain conditions there is an option to apply VAT to lease agreements relating to (new) buildings. Not only does this optional levy open up the right to deduct the VAT incurred after 1 January 2019, but also the historic VAT. On 10 January 2019, on its website the Tax Authorities published a guideline concerning the refund of this historic VAT.
The historic VAT is the VAT that became due before 1 January 2019, but that could not yet be deducted prior to this date. According to the communication, this VAT may now be deducted in the tax return relating to the first period of 2019 (to be submitted before 20 February 2019 for anyone filing monthly returns and before 20 April 2019 for anyone filing quarterly returns).
More specifically, this concerns the VAT levied on:
The amount of the historic deductible VAT is offset against the amount of the payable VAT, as in section 71 of the periodic tax in line with the usual rules. If after offsetting this amount, another amount of this historic VAT qualifies for deduction, this credit will be transferred to the next tax periods and so on, until this amount has been fully allocated.
The amount of VAT that cannot be offset in the first eleven monthly tax returns or the first three quarterly tax returns in the year 2019, can be included in the monthly tax return of December 2019 or of the fourth quarter of 2019. This will otherwise not be transferred.
In order to deduct historic VAT, the taxpayer must provide his authorised VAT supervising office with an inventory of the goods and services in question in respect of which he wishes to deduct the VAT.
If you have any questions on how to deduct the historic VAT, please do not hesitate to contact one of our specialists at email@example.com.
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