Belgium revises VAT penalties

Thu 9th Aug 2018

Belgium has overhauled its VAT penalty regime to make it less onerous for overdue filings. Its new regime was implemented from 1 August 2018, and has been applied retrospectively to 1 Jan.

The old regime imposed a fine on late VAT return filings of €100 per filing per month. Plus interest charge on any VAT not remitted of 0.8% per month. The new process introduces two new considerations: nature of offence and missed VAT filings; plus taxpayer’s compliance history:

Missed VAT filings

There are a number of scenarios where fines may be discounted for late VAT returns, annual client listing, Intrastat or European Sales Listing:

  • The tax payer was not seeking to commit VAT evasion
  • The tax payer provides a waiver request, and had since filed the missed return with VAT remittance.
  • There are no changes for fraud-related offences, of where VAT is not declared properly

Taxpayer compliance history

If it is the taxpayer’s first offence in a four-year cycle, the fine may be waived. In the case of a second infraction, the fine will be discounted by 2% of the VAT due.

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