Belgian Non-Profits Face New VAT Reporting Obligations Starting January 1, 2024

Introduction

As of January 1, 2024, Belgian non-profit organizations will face new Value-Added Tax (VAT) reporting obligations. According to the new regulation, these organizations will be required to provide information about their VAT deduction method to the tax authorities.

Background

Non-profit organizations in Belgium are subject to VAT, but certain activities may be exempt from this requirement. However, associations with partial right of deduction must comply with the new reporting obligation, which extends to partial taxpayers starting from January 1, 2024.

Key Points to Note

• Non-profit organizations in Belgium will need to review their VAT status and optimize their VAT deduction method to avoid any potential issues.
• Associations with partial right of deduction are required to provide information about their VAT deduction method to the tax authorities.
• Partial taxpayers must comply with the new reporting obligation starting from January 1, 2024.
• The deadline for providing the required information is April 22, 2024.

Importance of Compliance

Failure to comply with the reporting requirement may result in litigation regarding the VAT deduction percentage, highlighting the importance of timely compliance.

Seeking Professional Advice

Experts recommend that non-profit organizations in Belgium seek professional advice from a specialist to ensure compliance with the new regulation. The original source material and local advice can be consulted for further guidance on this matter.

By following these guidelines, Belgian non-profit organizations can ensure they are meeting their VAT reporting obligations and avoid any potential issues.