1. Introduction of "near real-time reporting" and expansion of the registered cash register system
From 2028, “near real-time reporting” will be introduced for invoicing between taxpayers and sectors where a registered cash register system (GKS) is mandatory. Cash register and invoicing systems will automatically transmit VAT data to the tax administration. This measure aims to reduce administrative burdens by eliminating the annual client listing while strengthening fraud prevention through advanced data mining and targeted audits.
Two years after the mandatory introduction of e-invoicing (in 2026), an e-reporting obligation will also be implemented. Administrative formalities such as the (nil) client listing will be abolished.
The obligation to use a GKS will be extended across the entire hospitality sector to ensure a level playing field and may be expanded to other fraud-sensitive sectors. A tolerance threshold will be established for small-scale activities to remain outside the scope of this requirement, with the existing EUR 25,000 threshold maintained, although its calculation method will be adjusted.
Interestingly, the government is exploring the introduction of a VAT receipt lottery, following international examples, to incentivize the systematic collection of receipts. This initiative aligns with broader policy efforts to enhance VAT compliance and reduce the VAT gap.
2. Simplification of VAT registers and the "daily receipts book"
The "daily receipts book" and certain other VAT registers will be abolished or significantly simplified. The government aims to eliminate unnecessary formalities and promote digital alternatives, such as 'near real-time reporting', to improve monitoring and reporting efficiency (see above).
3. Flat-rate VAT deduction for (company) bicycles
The VAT deduction for (company) bicycles will be simplified through a flat-rate scheme. This eliminates discussions on mixed-use cases and removes the need for mileage tracking. A circular will clarify the exact modalities.
4. Reintroduction of the reduced VAT rate for demolition and reconstruction
Property developers and project developers will once again be eligible for the 6% VAT rate on demolition and reconstruction, a measure intended to lower the cost of energy-efficient new construction. The 6% VAT rate for demolition and reconstruction will be extended to supplies, subject to the existing social conditions. However, the surface area threshold will be tightened from 200 m² to 175 m².
5. Temporary 6% VAT on heat pumps
To accelerate the energy transition, the VAT rate on the supply and installation of heat pumps will be temporarily reduced to 6% for a period of five years.
6. Increase in VAT on fossil fuel boilers and coal
To discourage environmentally harmful products, adjustments will be made to reduced VAT rates. The VAT rate for the supply and installation of fossil fuel boilers (gas, oil, etc.) in the renovation of homes older than 10 years will increase from 6% to 21%. Additionally, the VAT rate on coal will rise from 12% to 21%. These measures align with the broader policy to accelerate the energy transition and promote sustainable alternatives.
7. Clearer distinction between renovation (6%) and reconstruction (21%)
The government aims to establish uniform definitions to avoid disputes over the applicable VAT rate for construction works. Currently, ambiguities regarding the VAT rate for renovation works lead to numerous legal disputes. A clear distinction between renovation (6%) and conversion of buildings (21%) should help limit litigation and improve legal certainty for taxpayers.
8. Expansion of the VAT-relief for donations to recognized institutions
VAT-taxable persons may, under certain conditions, donate goods to recognized institutions while retaining their right to input VAT deduction and without triggering a deemed supply. The government is strengthening tax incentives for donations to reduce waste. The condition regarding the commercial sales period will be relaxed, with the 15-day rule being replaced in some cases by a period based on the total shelf life of the product. Additionally, the list of excluded goods will be revised to allow more products to qualify for VAT relief.
9. Direct contact point within the tax administration
The government is ensuring direct access to the competent tax inspector or department for ongoing VAT audits and disputes. A unified communication system will be introduced for VAT, corporate income tax, and payroll withholding tax, providing clear contact points, including contact code and email addresses. VAT-taxable persons will be able to contact the administration directly and schedule appointments when necessary. This measure aims to improve communication with the tax authorities and enhance legal certainty. At present, reaching the right person within the tax administration remains a significant challenge.
10. Reform of the penalty policy
The federal government is working on modernizing VAT penalties. When determining proportional fines, mitigating circumstances—such as the absence of financial harm to the Belgian Treasury due to the infringement—will be taken into account.
Conclusion
After a challenging negotiation process, the coalition agreement has been finalized, but the real challenge now begins. The 2025 agreement introduces significant VAT reforms that will impact both businesses and individuals. The government is following a dual approach: simplifying and modernizing VAT obligations while simultaneously strengthening enforcement and providing fiscal incentives to support the green transition.
Finally, there is more political clarity. The Finance portfolio has been allocated to N-VA, with Jan Jambon appointed as minister. The previous government already implemented substantial changes to VAT legislation in the last legislative term, and there is no indication that this trend will stop. The VAT landscape remains in motion, and we will closely monitor further developments in the coming legislative period.
Do you have questions about the impact of these reforms? VAT Consult is ready to assist you.