The Belgian Minister of Finance, Johan Van Overtveldt, has announced that taxpayers currently making quarterly prepayments for Value Added Tax (VAT) will no longer need to do so from 1 April 2017.
Instead, there will be a requirement for one prepayment for the 4th quarter due on 20th December which is equal to the VAT paid in the 3rd quarter.
Currently, taxpayers who file quarterly VAT returns are required to make monthly prepayments. Each prepayment equals a third of the VAT amount due in the preceding quarter.
This process has been having a considerable impact on taxpayers’ cash flow. It also added an administrative burden to the Belgian tax office.
It is important to note that businesses filing on a quarterly basis are still required to honour February and March 2017 prepayments. This new measure will only be applicable from the second quarter of 2017.