No fundamental changes have been made to the rules of the optional regime as compared to the rules set out in our previous newsletters. However, the remaining doubt about the calculation method of the extended VAT revision period has been further clarified. Originally, the explanatory memorandum stated that, under the extended VAT revision period of 25 years, the revision should be calculated on a monthly basis deriving from the standard VAT revision rules. The Minister of Finance has now clarified that the standard calculation on an annual basis will also apply for revisions under the extended VAT revision period.
The option to submit immovable rental property to VAT is only open for buildings, or parts of buildings, for which the VAT on the construction works, which specifically contribute to the construction of the building, become chargeable for the first time from 1 October 2018. This cut-off date has been upheld despite an amendment proposal.
We now look forward to the publication of the Royal Decree in which the modalities of the extended VAT revision period will be further outlined as well as to the administrative guidance on these new rules.
We are pleased to invite you to one of our follow-up seminars dealing with the new rules. These seminars will take place on the following dates and in the following locations:
- Monday 12 November 2018 at 18.00h in Antwerp (Office Tiberghien, Grote Steenweg 214, 2600 Antwerpen)
- Wednesday 14 November 2018 at 18.00h in Ghent (WATT The Firms, Nieuwe Wandeling 62, 9000 Gent)
- Tuesday 20 November 2018 at 12.00h in Brussels (Office Tiberghien, Tour & Taxis, Havenlaan 86C, 1000 Brussel)
Please do not hesitate to contact us if you have any questions about the new optional regime for VAT taxable rent.