News article

Belgium – providing detailed information on real use for VAT deduction no longer mandatory for SMEs from 2026

Mixed VAT taxpayers who apply the real use for their VAT deduction are currently required to provide the following additional information, based on figures from the previous year, with their VAT return for the first quarter or, at the latest, for the month March:

• the percentage allocation of the VAT charged to:
  • costs of activities for which there is a right to deduct;
  • costs of activities for which there is no right to deduct;
  • mixed costs;
• the special ratio(s).

For 2025, as for 2024, these VAT taxpayers have been granted a deferral by the tax authorities to provide this detailed information in their VAT return for the second quarter, or at the latest for the month June (returns to be submitted by 8 August 2025 under the summer arrangement). They may base this information on an estimate. However, they must then provide the detailed information again in their third quarter return, or at the latest in their November return, based on the final figures for the past year.

As was the case last year, the tax authorities have indicated that this estimate will suffice, except for large companies, which will remain obliged to provide the final figures. From 2026 onwards, no tolerance will be applied for these companies.

But even more importantly, from 2026 onwards, SMEs will no longer be required to provide this additional detailed information.

For partially VAT taxpayers entities, it had already been decided last year that only large companies would be required to provide this detailed information.

FPS Finance, news item, 4 July 2025