From 1st April, 2017 taxpayers who currently making quarterly prepayments for Value Added Tax (VAT), will no longer be required to do so the Belgian Minister of Finance, Johan Van Overtyeldt has announced.
Going forward, there will be an obligation for one prepayment for the fourth quarter which will be due on 20th December, this will be identical to the VAT paid in the third quarter.
At the moment, taxpayers who file quarterly VAT returns, are also required to make monthly prepayments. Each of these prepayments are equal to a third of the VAT amount due in the previous quarter.
This method has been having a significant bearing on taxpayers’ cash flow, while adding an administrative burden on the Belgian tax office.
It is imperative to note that businesses filing on a quarterly basis are still required to respect the February and March 20117 prepayments. This new instruction will only be applicable from the second quarter of 2017.
To find out more information please visit www.amavat.eu